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BUSINESS

Kedah MB: ECK no longer part of Kulim Airport project

13/07/2022 05:54 PM

ALOR SETAR, July 13 (Bernama) -- Kedah Menteri Besar Datuk Seri Muhammad Sanusi Md Nor announced that the ECK Group of Companies (ECK) is no longer involved in a joint venture with the state government to develop the Kulim International Airport (KXP) project in Mukim Sidam Kiri in Kuala Muda.

Muhammad Sanusi said the joint venture with the company was terminated in May this year after it failed to comply with the terms of the agreement, including paying a land acquisition deposit of 125 per cent of the estimated land acquisition of RM2.1 billion.

Yes (ECK is no longer involved in KXP), (the joint venture) was terminated in May because it could not meet the conditions agreed in the joint venture agreement.

“The basis of the project is land acquisition, when land cannot be acquired, so the project cannot be carried out, we do not want to stop the project, (but) we are looking for other people (companies) as well,” he told reporters after launching the Kulim Smart Parking initiative here today.

He said there were eight companies that expressed a desire to work with the state government and were seen to have the “strength” to develop the project, which was implemented with a private finance initiative (PFI) approach.

Muhammad Sanusi explained that KXP AirportCity Holdings Sdn Bhd, a subsidiary of the Kedah State Development Corporation (PKNK), is responsible for handling the development of the project and will make a due diligence assessment before appointing any eligible company.

“We will have a process for the selection of the most convincing company because this involves a huge investment,” he said.

In August last year, the Kedah state government signed a joint venture agreement with ECK involving the establishment of a special purpose vehicle (SPV) to develop KXP and also be involved in the Kedah Aerotropolis and Airport City project.

-- BERNAMA 

 

 


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