KLIA 2: RM4b price tag justified

The Transport Ministry says the cost increase from RM2 billion to RM4 billion is needed to increase KLIA 2's capacity to meet future demands.

KUALA LUMPUR: The government has defended the increase in cost to build KLIA 2, saying it was inevitable due to the need to incorporate additional specifications to the new low-cost airport.

Deputy Transport Minister Abdul Rahim Bakri said this during the question and answer session at the parliament today.

He said that the government decided to upgrade certain facilities in the airport to meet soaring passengers’ arrival to the country in the future.

“Malaysia Airports Holdings Berhad (MAHB) consulted the government on this and we decided to expand the airport in terms of size and facilities, which resulted in the price hike.

“But the escalating price has not affected RAM Holdings’ triple A ratings given to the airport,” said Abdul Rahim.

Opposition leaders had criticised the government on the ballooning cost of the KLIA 2 project, from its original price of RM2 billion to RM4 billion this year.

Petaling Jaya MP Tony Pua also questioned the government’s rationale to shift the construction work from KLIA North to KLIA West, despite experts saying the latter area being unsuitable.

Abdul Rahim said that among the upgrades made were the construction of a new four kilometre runway and implementing better security features for the airport.

On the project’s completion time, the deputy minister assured that the project would be completed by April 2013.

“Even now, the construction is 61.92% complete, which is beyond our projection of 56.9 % completion for this month,” he said.