Hit by further delays, the new low cost carrier terminal KLIA2 is expected to be open for operations May 2, 2014, more than 10 months later than its last scheduled launch date.

According to Malaysia Airports Holdings Bhd (MAHB) this was upon revision with the contractor UEMC-Bina Puri Joint Venture.

"UEMC-Bina Puri JV, the contractors for the terminal building have today confirmed that the completion date will be Apr 30, 2014, inclusive of securing the certificate of completion and compliance and operational readiness and airport transfer as per the contractual obligations.

"Based on the revised completion by the contractors, we are targeting to open KLIA2 for operations on May 2, 2014," it said in a late filing to Bursa Malaysia today.

It added that safety is the MAHB's "utmost priority" and it will ensure that the terminal building is completed within all safety standards.

It added that said it will continue to monitor the progress of the work and enforce the late fines accordingly according to the contract.

In a filing with Bursa yesterday, MAHB said it has slapped a fine of close to RM200,000 a day on the contractor starting June 16 for the failure to complete construction by the June 15 deadline.

Responding to a query, it added the fine will be in place until construction is complete, regardless of the new deadline.

The KLIA2, which will replace the Low-Cost Carrier Terminal was scheduled for launch on June 28 to coincide with KL International Airport's 15th anniversary.

Since the project was first tendered in 2009, it has been hampered by numerous problems, causing the cost to more than double, from RM1.7 billion to RM4 billion last year.

Contractors say deadline will be met

Joint venture (JV) partners, UEM Construction Sdn Bhd and Bina Puri Holdings Bhd, are working rigorously to meet the new KLIA2 opening date target of May 2, 2014 adds Bernama.

Mohd Razin Ghazali, managing director of UEM Builders Bhd, the parent company of UEM Construction, said JV will do so without compromising the safety, quality and operational efficiency of the new airport.

He added that JV has targeted to fully hand over the KLIA2 to Malaysia Airports Holdings Bhd (MAHB) on April 30, 2014.

In a statement today, he also said the JV partners have remaining physical construction of approximately seven percent, to complete.

"Upon achieving physical completion, we together with MAHB will immediately work towards obtaining the Certificate of Completion and Compliance (CCC) from the relevant authorities, which typically takes up to eight weeks.

"After that, MAHB will undertake the Operational Readiness & Airport Transfer or ORAT, a process that takes up an estimated three months to complete, with full handover targeted for April 30," he added.

As to the cause of the previous delays, Group Executive Director of Bina Puri Holdings, Matthew Tee said while the JV-partners had requested for several extensions, the approved extended period granted by MAHB was not sufficient in its opinion, to undertake the construction work.

The request for extension was mainly due to the various design changes, including variation works on the baggage handling system and unexpected ground condition which required additional piling and temporary sheet pile.

On the issuance of the certificate of non-completion by MAHB to the JV company, thus invoking Liquidated Ascertained Damages (LAD), he said it was a standard clause found in any construction contract.

The JV company Tee added, will visit the matter separately and upon handing over the project to MAHB, while reserving the rights under the contract and agreement signed.

MAHB slaps hefty fine on KLIA2 contractor for delays