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MAHB receives arbitration notice on klia2 Integrated Complex delay

22 Mar 2019 / 19:15 H.

PETALING JAYA: Malaysia Airports Holdings Bhd (MAHB) has received a notice of arbitration from Segi Astana Sdn Bhd with claims amounting to RM70 million, in relation to the klia2 Integrated Complex.

In a filing with Bursa Malaysia, MAHB said Segi Astana is claiming RM70 million for alleged losses and damages pertaining to the delay in the commencement of the commercial operation of the klia2 Integrated Complex.

MAHB said it is disputing and challenging the claims by Segi Astana. It has appointed a law firm in Malaysia to represent and assist the company in the arbitration proceedings.

The airport operator said the arbitration proceedings are not expected to have any material financial and operational impact to the group or the company’s business operation.

Yesterday, MAHB issued a notice of arbitration against WCT Bhd and Segi Astana to recover the fixed monthly charges of RM958,849 per month for the supply of chilled water for the cooling system of the klia2 Integrated Complex.

In a separate filing, MAHB said its wholly owned subsidiary Malaysia Airport (Subang) Sdn Bhd has entered into a joint venture agreement (JVA) with BP Aerotech (Subang) Sdn Bhd to undertake the development of an aerospace and high-tech park in Subang.

The project will be developed within the Subang Aerotech Park in Subang and will be leased to companies in the aerospace industry.

BP Aerotech is a wholly owned subsidiary of Boustead Projects Limited, which is listed on the Mainboard of the Singapore Exchange Securities Trading Limited.

Pursuant to the JVA, a joint venture company (JV Co) will be incorporated with BP Aerotech holding a 70% share and Malaysia Airport Subang holding the remaining 30% share.

The JV Co will be granted the rights to sublease up to about 34.66 acres of the land located within the proximity of the Sultan Abdul Aziz Shah Airport (Subang Airport) for the project, subject to MAHB obtaining the relevant authorities’ approvals.

The JV Co will appoint BP Aerotech or its business unit(s) to carry out the design, construction, project management, development management, testing, commissioning and fit-out works and asset management or property management for the project.

According to MAHB, the collaboration is in line with its vision of long-term growth of aviation and aerospace cluster. It also serves as the catalyst of the Subang Regeneration Initiative.

The joint venture will be funded through a combination of internally generated funds and bank borrowings.

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