Bina Puri, MAHB finalising talks on LAD

KUALA LUMPUR: Bina Puri Holdings Bhd, one of the main contractors of KLIA2, is still finalising discussions with Malaysia Airports Holdings Bhd (MAHB) on the liquidated and ascertained damages (LAD) imposed for the delay in completing the KLIA2 terminal in Sepang.
Joint venture (JV) partners Bina Puri Sdn Bhd and UEM Construction Sdn Bhd were awarded the work package worth RM997 million that makes up KLIA2’s main terminal building, satellite building, sky bridge and piers.
The LAD was imposed when it did not meet the June 15, 2013 deadline. It was reported previously that the LAD is at RM199,445.40 per day.
“Currently we’re in the midst of finalising it with MAHB. This project is undertaken by UEM and Bina Puri under a 60:40 JV. UEM is taking a lead in finalising this,” Bina Puri group COO of contracts and administration We Her Ching told an analyst and media briefing here yesterday.
He said it has been 1½ years since the airport opened and there have been no major hiccups.
“At the moment, it’s still premature to mention the amount,” We said when asked about the LAD.
Bina Puri group executive director Matthew Tee said KLIA2 is still a pending issue. “When the right time comes, you will see the proper announcements,” said Tee.
An analyst said until Bina Puri closes the chapter on the LAD issue, the matter will still be a concern to investors.
“Even though it’s on a JV level, if the LAD materialises, it can be significant (impact),” he told SunBiz.
The analyst cautioned that the group’s exposure to the LAD under the JV is larger than its market capitalisation of RM95.39 million and this can impact Bina Puri’s earnings significantly.