KLIA2 project cost and delay: MAHB "team of liars"

Ana Ghoib Syeikh Malaya 1:49 PTG
Prime Minister Najib Razak came in for a tongue-lashing by two young Opposition leaders for not being honest about the country's long-delayed new low-cost carrier terminal, KLIA2.

"Malaysia Airports is run by an incompetent team of liars, who have failed to take responsibility for the cost overruns and the perpetual delays," Nurul Izzah, the MP for Lembah Pantai, and Tony Pua, the MP for PJ Utara, said at press conference on Monday.

"They are trying to save Najib's face," said Tony, when asked why MAHB - if construction was still so far away from completion date - would specify May 2013 as the deadline and June 28 as the opening date to the public.

http://www.youtube.com/watch?feature=player_embedded&v=AIU4RToy5a0

Perpetual delays and ballooning costs

Malaysia Airports, or MAHB, is 40% owned by Khazanah Bhd, which is the government's investment arm that answers to the Finance Minister, a portfolio that is now being held by Najib himself.

Due to investor and public complaints, the public-listed firm has issued several statements about when it is due to deliver the project. On March 28, it confirmed the project was on schedule to be delivered by June. On May 7, it retracted and said the delay was "indefinite". On May 14, the general manager Fawzy Ahmad said KLIA2 could only be ready by "4th quarter 2013".

But according to Nurul and Tony, the construction of KLIA2 is so far way from completion stage that MAHB may miss delivering the project even by the latest year-end deadline.

They showed photographs taken of the site as at the first week of May, 2013 (see video). "Even the runway was not in sight," pointed out Tony. "They are missing the deadline not just by one or two weeks but by at least 6 months," he added.

Nurul and Tony want MAHB to announce the new deadline and come clean on the cost overruns.

Mainstream media misleading the public about the cost overruns

The project initially projected to cost RM1.7billion in 2007 is expected to cost RM4billion based on an official estimate made to Parliament in October 2012.

With the latest delay, chances are high that the final bill could hit RM4.5bil.

"What is disappointing is that the mainstream media has alluded, hinted that the cost can balloon to RM4.5 bill, managing the public's expectations. This is highly irresponsible and instead of criticizing, questioning the authorities, they are making up excuses as to why the delay and preparing the public to accept the cost of (say) RM4.5bil," said Nurul.

Apart from costs, the Opposition leaders are also seeking a meeting with the MAHB to clarify the issue, which has sparked alarm and concern amongst a large group of users and consumers. They also want the Transport Ministry to conduct an audit of the project.

"Our reputation is at stake as Firefly, Malindo are expected to operate out of KLIA2 by May. So it is not just about MAHB as an entity but the commitments of the other parties who planned based on the schedule given by Malaysia Airports," said Nurul.

klia2 progress opening wiki


 
Key Facilities of KLIA2

Based on airlines requests:
45 million passenger capacity
68 contact stands
8 remote stands
Substantially enhanced comfort level
Fully-automated BHS (Baggage Handling System)
4Km runway with a 2.2Km separation from
Runway 2
Provision for A380 operations
Tune Hotel
Air Transit Hotel
Premium lounges
AirAsia Head Office with apron access
AirAsia staff multi level parking
Hub for public transport for ERL, taxis, buses,
and KTM (in future)
FOR MORE INFO ON KLIS2 PROJECT AND PLAN FACILITIES CLICK HERE: KLIA2 INFO

Source: Malaysia Chronicle