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Sunday, February 26, 2023

Kulim Aerotropolis won't involve federal funds, Kedah MB tells PM

 


Kedah Menteri Besar Muhammad Sanusi Md Nor has appealed to Prime Minister Anwar Ibrahim to give proper consideration to the state's plans of developing an aviation hub dubbed the Kedah Aerotropolis.

This was after Anwar snubbed plans to build the Kulim International Airport (KXP) - which is part of the Kedah Aerotropolis - during his Budget 2023 speech on Friday.

In a statement today, Sanusi (above, right) said that unlike the Penang and Subang international airports - which Anwar had decided to channel funds to - the Kedah Aerotropolis will not need any federal financing.

He explained that the project will instead be a private finance initiative and fully funded by investments from local firms.

However, while Putrajaya's funds are not required, Sanusi said the state still needs federal approval to proceed with the project.

"What is needed is cooperation from federal agencies to ease any matters involving federal powers, including in dealing with the Transport Ministry," he added.

Sanusi revealed at the end of last year that the Kedah Aerotropolis had already secured several investors.

The Kedah Aerotropolis will include the Sidam Logistics and Aerospace and Manufacturing hub which aims to be a regional centre for air travel maintenance, repair, and overhaul centre.

As for KXP, the Kedah government had in August 2021 signed a joint venture agreement with ECK Group to build the airport by 2026.

An artist's impression of the terminal building for the proposed Kulim Airport

The first phase of construction would cost RM6 billion including the cost of land acquisition.

However, the partnership with ECK was terminated last year.

Sanusi calls for talks with PM

During the Budget 2023 speech, Anwar said plans to upgrade the Subang and Penang airports would generate economic growth, and cost less than building an airport in Kulim.

Sanusi, in his statement today, said the Aerotropolis and KXP too could contribute to the nation's economy.

However, he believed Anwar does not have the full picture and hoped the two of them could meet and discuss the project.

"I believe that the prime minister has not been granted a full understanding of the KXP project and efforts will be made to present the project to him.

"Two requests to meet (him) for this purpose have been sent, but no response has been received.

"Whatever the obstacle, it is hoped that common ground can be reached to realise this effort for the interest of the people in Kedah in particular and the entire nation," Sanusi said.

Among the misconceptions that the PAS lawmaker hoped to clear up was that KXP would compete with the Penang airport.

This, Sanusi said, was not true as the KXP will start off as a cargo hub and a passenger segment has yet to be planned. - Mkini

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