KUALA LUMPUR – In less than a year after signing on, developer ECK Development Sdn Bhd has dropped the proposed RM7 billion Kulim International Airport (KXP) at the bidding of the Kedah government.
Quoting an unnamed Kedah official, ECK’s exit was in May after failing to fully pay a RM2 billion deposit to the state government for land acquisition, reported Free Malaysia Today.
The source added that seven or eight parties have made known their interest in the project while awaiting the state’s special purpose vehicle, KXP Holdings Sdn Bhd, to make a decision.
It was reiterated that the Kedah menteri besar told the state assembly that the deal with ECK would be cancelled if project terms were not met.
In April, Datuk Seri Muhammad Sanusi Md Nor said the project was a private finance initiative, while ECK denied allegations that it did not have to pay a single sen for the project.
The KXP project also garnered objections from neighbouring state Penang, as Chief Minister Chow Kon Yeow in May said airport development would depend on the completion of the Transport Ministry’s National Airports Strategic Plan.
Earlier, Penang had been waiting for the approval to expand its international airport in Bayan Lepas.
On August 2 last year, ECK entered into a joint venture with the Kedah government with KXP Holdings as owner and developer of KXP.
Sanusi had said ECK would own 80% equity of KXP Holdings and the state would hold the rest via Kedah Development Corporation’s subsidiary KXP AirportCity Holdings Sdn Bhd.
He expected the project to be completed by 2026 and offer 15,000 to 18,000 job opportunities for locals. – The Vibes, July 9, 2022
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