Malaysia Airport Holdings Bhd (MAHB) is confident of maintaining the development cost of the Kuala Lumpur International Airport 2 (KLIA2) at the budgeted RM4 billion despite cost challenges.
Chief Financial Officer Faizal Mansor said the challenges included increases in the price of raw materials due to the construction of the My Rapid Transit project.
“The cost has gone up and some of our contractors are suffering because of this. There could be some pressure (on cost) as a result, but we are monitoring the situation very closely,” he told a media briefing after announcing MAHB’s financial results here today.
Faizal said the RM4 billion cost was the cheapest for an airport to be built anywhere in the world because it includes a 400-meter runway, a new control tower and new set of air traffic control equipment.
The cost also includes the infrastructure development surrounding the KLIA2 which will have a passenger capacity of 45 million, he added.
The issues related to the rising cost of materials has put the project 30 days behind schedule.
“Currently, we should be almost 85 percent complete, but are slightly behind schedule, at probably 81 to 82 percent.
“However, we have a catch up programme. I think, with everybody continuing to meet the timeline, we should be able to complete the project by end April.
“This gives us a lot of time for the preparatory stages, especially in testing and commencing of equipment, the baggage handling system, movement of passengers, and such,” Faizal said.