From 1.7 bil to 4bil, but Liow insists NO cost overrun at KLIA2

KUALA LUMPUR - Transport Ministry said while the costs of its low-cost airport, the Second Kuala Lumpur International Airport (KLIA2) increased from RM1.7 billion to RM4 billion, the project did not experience any cost overrun.

“The cost of the project increased because of the additional scope due to the new design concept for KLIA2, or based on the specific needs of the stakeholders like airline companies and the government,” it said.

In a written reply to Datuk Mohd Ariff Sabri Abdul Aziz (DAP-Raub), the ministry said liquidated ascertained damages (LAD) will be taken against its main contractor – JV UEM-Binapuri – over the delay in completing the low-cost airport.

“Airport operator Malaysia Airports Holdings Bhd (MAHB) is discussing with UEM-Binapuri the amount on the payment.

“Any contractor or consultant who does not achieve the required performance level will have their contract terminated according to the terms and conditions,” the ministry said.

In November last year, the Public Accounts Committee (PAC) suggested that the Auditor-General carry out an audit on the airport following its ballooning cost from the initial RM1.7 billion to RM4 billion.

Later, Transport Minister Datuk Seri Liow Tiong Lai had supported PAC’s recommendation that the AG probe the airport. - Sundaily