GEORGE TOWN – The Kedah government has come under fire for prioritising the Kulim International Airport (KXP) project instead of battling Covid-19, just hours after inking the deal with ECK Group.
“Do not brag, this is not the right time to publicise the airport project,” said Deputy Chief Minister II P. Ramasamy.
Kedah Menteri Besar Muhammad Sanusi Md Nor should instead prioritise the provision of basic necessities for clinics and hospitals to fight Covid-19, which is becoming increasingly alarming in his state, he added.
“It used to be a cargo airport, but now it is another story. I have no issue with KXP, but at the moment, who has the money?” he told The Vibes.
“Where will the state government find money to invest 20% in KXP? This is a project that requires huge expense.”
The Vibes had earlier reported that the Kedah government signed a joint venture agreement with developer ECK Group to build KXP.
Sanusi had 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.
Universiti Sains Malaysia’s Assoc Prof Ahmad Hilmy Abdul Hamid said Penang need not worry about KXP, which he added is no competition to Penang International Airport (PIA).
KXP’s construction provides economic benefits to Seberang Prai, as well as the northern triangle between Kedah, Perak and Penang, he added.
“There should be no issue. Tokyo and London both have two airports, each performing its own duties.
“Penang will not be disturbed by KXP. In fact, PIA’s capacity is also limited due to congestion. So, Penang, don’t worry too much.”
The KXP project sparked controversy when it was announced that it will be located some 60km from PIA.
Penang Chief Minister Chow Kon Yeow had said KXP will be a competition to PIA, and is expected to reduce the latter’s utilisation rate of cargo infrastructure facilities. – The Vibes, August 2, 2021
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