KLIA2 to cost RM3.9b now, to open in 2013

SEPANG (Nov 29, 2011): The new permanent low-cost carrier terminal in Sepang (KLIA2) will now cost between RM3.6 billion to RM3.9 billion – almost double the original estimate of RM2 billion – and the completion date is now in April 2013, instead of October 2012, Malaysia Airports Holdings Bhd (MAHB) said today.

The additional cost and delay in completion date are due to several changes to KLIA2 and the betterment of KLIA. The changes include a longer runway and bigger floorspace.

MAHB managing director Tan Sri Bashir Ahmad Abdul Majid said the terminal building is bigger with gross floor area (GFA) increased from 150,000 sq m to 257,000 sq m, catering to up to 45 million passengers per year, instead of up to 30 million as in the original plan.

He said the revision in capacity was due to expected growth in passengers as the original capacity of 30 million passengers was based on passenger numbers handled by the airport in 2009. "We believe passengers will grow, especially for low cost carriers. Our conservative forecast is by 2017, we will have 30 million passengers," he said.

Bashir said aircraft stands have also increased from 50 semi contact stands to 68 gates and eight remote stands (with 80 aerobridges), increasing the area for aircraft stands to 803,709 sq m from 500,000 sq m. Earthworks increased 130.7% from an area of 4.85 million sq m to 11.19 million sq m.

He said there will also be a third runway to cater to future growth. The third runway will now comply with Code E with a length of 3.96km instead of Code C with a 2.5km runway in the original plan. Bashir said with the increase in facilities and size of the project, public infrastructure works have also been increased with a longer road. There will be a 15km road with 5.4km elevated road compared with the original 8km with 1.5km elevated road.

In addition, there will be an air traffic control tower which is bigger than the apron control tower in the original plan while cost of fully automated baggage handling system increased by an additional RM100 million.

"We had a masterplan with a simple design (original deadline September 2011) but with requests such as airlines wanting more aircraft stands and government want segregation (of international and domestic passengers, as well as arrivals and departures), we asked for a design competition. "Secondly, the government mandate was to have all open tender which meant more applications," said Bashir.

He said these factors caused the delay of the project as the competition and open tenders took longer. KLIA2 is currently 42% completed and is ahead of schedule by 70 days.

AirAsia group CEO Tan Sri Tony Fernandes had recently questioned MAHB's move to build a 3.96km third runway at KLIA2, the delay in its completion as well as the escalating cost of building KLIA2.

Bashir said since the project commencement, the authorities and (MAHB's) board have been kept informed of the changes and progress. He said the terminal delay is justified as it is not building a low-cost terminal, but rather a terminal for low-cost carriers. "Whatever cost we incur will be based on scope of work that we have to do. It is not considered cost overrun but additional costs," he said.

He also said that airport tax is not related to costs of the terminal as the charges are heavily regulated. "When we upgrade the terminal, we do not increase passenger service charges (PSC) ... Whatever PSC is charged at current LCCT will be charged at this terminal (KLIA2)," he added.

-thesundaily.