18 June 2013
Malaysia Airports Holdings Bhd (MAHB), which had warned earlier this month that contractors causing the delay in the completion of klia2 in Sepang would have to pay liquidated damages, has slapped its first liquidated ascertained damages (LAD) claim on UEMC-Bina Puri Joint Venture (JV), amounting to RM199,445.40 per day.
The JV, comprising UEM Construction Sdn Bhd and Bina Puri Holdings Bhd, is the turnkey contractor for the new low-cost carrier terminal project for two packages – main terminal building, and satellite building, sky bridge and piers. The contract was awarded back in June 2010.
"In accordance with the terms of contract, MAHB has today issued the certificate of non-completion (CNC) to UEMC-Bina Puri JV, the contractor of the main terminal building, for their inability to complete the work by the approved deadline of June 15, 2013," said MAHB in a filing with Bursa Malaysia yesterday.
The airport operator said the LAD was invoked on June 16, 2013.
MAHB, which has faced criticism over several delays in completing klia2 and the inflating costs, said previously that had it had served notification to the contractors that they were unable to meet their contractual obligations for the opening date of June 28, 2013 for klia2.
On June 4, 2013, Bina Puri executive director Matthew Tee was quoted as saying the group was confident it will not be made to pay.
Meanwhile, WCT Bhd had on Friday said it will seek compensation from MAHB over the delay, adding that it could reach "a couple of millions."
Analysts are estimating that the opening of klia2 may be delayed for more than six months until the first quarter of 2014 due to the additional time required post completion of the terminal.
The terminal is about 90% completed but is still behind its original schedule.
AirAsia Bhd, who will ultimately be the biggest tenant of klia2, had also recently called on the government to appoint an independent body to evaluate the project.
Its CEO for Malaysia Aireen Omar had said the independent body can help to determine the current progress of klia2, its completion date and final cost to allay anymore finger pointing against AirAsia or the contractors.
Yesterday, shares of MAHB fell 1.94% or 12 sen to close at RM6.05, while Bina Puri rose 0.5 sen to close at 76.5 sen.
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