GEORGE TOWN: The open tender for the Penang International Airport (PIA) expansion project is expected to be called at the end of this year, according to Finance Minister Lim Guan Eng.
He said the government had approved both the PIA expansion project and the Kulim International Airport (KXP) development project on condition that they were carried out through private finance initiatives (PFI).
The PIA project could be implemented faster, he noted, as the feasibility study had been done earlier and the maximum passenger traffic capacity had also been exceeded.
“There are many parties interested in investing in PIA as they see the potential based on the 6.5 million maximum annual capacity. We have already achieved 8 million passengers and this project is not starting from ground zero as the feasibility study has been completed.
“I hope that the tender will be called end of this year,“ he told reporters after officiating the ground-breaking ceremony for Aemulus Corporation Sdn Bhd’s new plant in Bayan Lepas today.
According to him, the project is expected to raise PIA’s maximum capacity to 16 million passengers per year, with the potential of a further capacity expansion to 20 million passengers later through PFI.
He said the private sector financing for the PIA and KXP projects reflected investors’ confidence in the new government, whereas the two projects did not get the previous government’s approval.
Asked on Penang Chief Minister Chow Kon Yeow’s call for a feasibility study on the KXP project, Lim, who is also the Bagan MP, said all airport projects must have such a study.
“The proposal to build KXP is still at an early stage where we are still waiting for a concrete investor to put forward a proposal before we can finalise anything,“ he said.
Lim said the Finance Ministry had no objection to KXP’s construction if it was done via PFI.
On Tuesday, Economic Affairs Minister Datuk Seri Mohamed Azmin Ali announced that the government had approved several high-impact projects for Kedah costing more than RM3.6 billion, including the construction of KXP that would involve an investment of RM1.6 billion.
The following day, Chow called for the Federal Government to conduct a feasibility study before starting the KXP project. — Bernama
