KUALA LUMPUR – A feasibility study of Kulim airport is expected to begin this year, but concerns about acquiring Malay reserve land have put stakeholders in a tight spot, people familiar with the matter told The Vibes.
It is understood that the National Airports Strategic Plan, which is expected to take two years to complete, will look into the 3,966ha development comprising the airport and the Sidam Logistic and Manufacturing Hub (SLAM).
However, documents sighted raised various issues that could occur should the Kedah government, through its vehicle KXP AirportCity Holdings Sdn Bhd, and Putrajaya proceed with the development.
Among them: the possible acquisition of Malay reserve land under the Land Acquisition Act 1960, purchase of land below market price only to flip it for an inflated sum, and an outright land acquisition as opposed to one done in stages.
A sizeable chunk of the land consists of oil palm plantations.
It is believed that land acquisition for the airport will cost RM1.6 billion, and KXP AirportCity Holdings is in negotiations with landowners on procuring the land.
As for SLAM, federal agency the Northern Corridor Implementation Authority is expected to oversee development.
This, in turn, has raised questions on the project owners since one is a state entity, and the other, federal. It is believed that KXP AirportCity Holdings is looking to own both.
Funding for the twin projects is expected to be done through private financing initiatives.
Kulim airport is expected to be built in the small town of Sidam Kiri, although its exact site has yet to be determined.
Sidam Kiri is some 40km from Kulim town, but the location is nonetheless strategic, as it is only about 20km from the Kulim Hi-Tech Park, where multinational tech businesses, including blue-chip companies Infineon, Intel and Osram, have set up shop.
The privately held ECK Group of Companies on Wednesday said it has entered a partnership with the Kedah government to develop the airport.
ECK said a special purpose vehicle (SPV) responsible for the development and financial aspects of the airport and SLAM will be established.
It said the SPV will be chaired by Tunku Laksamana of Kedah Datuk Seri DiRaja Tunku Shazuddin Ariff Al Aminul Karim Sultan Sallehuddin, while the board of directors will comprise state government and private sector representatives. – The Vibes, February 27, 2021
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