ALOR STAR – The Kedah government today signed a joint venture agreement with developer ECK Group to build Kulim International Airport (KXP).
Menteri Besar Muhammad Sanusi Md Nor said a special purpose vehicle (SPV) will be set up under the agreement to act as a project owner and developer.
Some 80% of the SPV stake will be owned by ECK, while the rest will be owned by the state via a Kedah State Development Corporation subsidiary, KXP AirportCity Holdings Sdn Bhd.
The airport is expected to be completed in five years.
“(We expect) the KXP project to be completed by 2026.
“After that, we will be able to see significant changes in the economic landscape in Kedah,” said Sanusi in a statement today.
The Kedah government was represented by Sanusi, who is KXP AirportCity chairman, and ECK Group managing director Tan Sri Khor Eng Chuen.
The menteri besar said Phase 1 of the project, including land acquisition, will cost RM6 billion, but did not reveal the total cost.
He said the project will also include four major infrastructure developments – one of which is the Bandar Baharu-Sg Petani Northern Corridor Highway that will go through the airport.
“Besides that, a new North-South Expressway access will be built in Tikam Batu, and the existing Sg Petani access route will be updated. This includes the proposed new alignment of the Tasik Gelugor-Kulim Hi-Tech Park-Sg Petani-Kulim railway route.”
Sanusi said the airport will play a key role in advancing regional aviation and becoming a halal and e-commerce hub for Asean.
It will also aim to be a maintenance, repair and operation hub and regional disaster operations centre, he added.
“I am confident that this will be good news for the people of Kedah and other northern states, as KXP will also service haj and umrah flights.
“In terms of the economy, the state government is optimistic that KXP will be able to generate a 7.5% gross domestic product for the state, compared with the current 4.5%.”
He said KXP is expected to contribute to the gross national income of RM1.186 billion in 2026, and provide up to 18,000 jobs to locals. – The Vibes, August 2, 2021
