'KLIA2 delay has no financial impact on MAHB'

PARLIAMENT The delay in the construction of the low-cost carrier terminal KLIA2 has caused no financial impact on Malaysian Airports Holdings Bhd (MAHB), says the Transport Ministry.

In a curt written answer to DAP's Petaling Jaya Utara MP Tony Pua, acting Transport Minister Hishammuddin Hussein said the delay in completion of the KLIA2 "does not affect MAHB's profits at all".

"The company has maintained a ‘Triple A' rating through rating agency RAM Rating Services despite the delay," Hishammuddin said.

The minister also revealed that the new scheduled completion date is May 2, 2014.

In a press release today, Pua criticised the Hishammuddin for demonstrating the ministry's lackadaisical attitude when it came to taking responsibility over the KLIA2 construction delay.

He said the series of delays had resulted in many problems, such as the ballooning cost from RM1.7 billion to RM4 billion.

"If it is true that the delays are not affecting MAHB's profits, then they should take another three to four years (to complete it)," said Pua, sarcastically.

Pua said MAHB had to take a RM3.1 billion loan to finance the increased cost and interest must be paid to the lenders. 

"Without revenue from KLIA, which has been delayed by two years, it will affect MAHB's bottom line," he said.

He also pointed out that there are opportunity costs involved, as the present low-cost carrier terminal (LCCT) can only handle 15 million people a year.

On MAHB's "Triple A" rating, Pua said the rating suggests that the company is in good stead financially, but that the government had the capacity to "bailout" the company.

Ultimately, MAHB is most likely to pass on the increased cost of building KLIA2 to the consumers, noting that airport tax for the LCCT had already increased by 28 percent in 2011.

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