BAYAN LEPAS: The Federal Government has been urged to resolve issue concerning the operator of Penang International Airport (PIA).
Penang Chief Minister Chow Kon Yeow said this might be the reason behind the delay in implementing the PIA expansion project.
Malaysia Airports Holdings Bhd (MAHB) is the concessionaire for PIA.
Chow said if the expansion project was to be funded through private financial initiative (PFI), the PFI company would seek to operate the airport for a specific period of time.
“The PFI company would want to operate the airport to get returns (from its investment), but the airports’ concession is now under MAHB.
“So, if the expansion project is undertaken through PFI, then how would it work if the airport is not surrendered to the PFI company?
“This is what has to be resolved first, and I believe this is what is hindering the progress (PIA expansion project),” Chow said after launching the Siemens Technical Competency Hub at Siemens Digital Industry Software Sdn Bhd here today.
He said the PFI company had yet to submit its proposal for the expansion project.
“In principle, the expansion project has been approved, but they are unable to submit a plan to the MBPP (Penang Island City Council),” he said.
He was commenting on the Northern Corridor Economic Region (NCER) meeting on Thursday where plans for the expansion of PIA and Ipoh Airport, which would also be carried out through PFI, were discussed.
“At the meeting, the Federal Government said it was considering for the airports in the country to undergo restructuring in their equity and operations.
“I will pursue this matter again in this Monday’s Parliament sitting.”
Earlier this year, Finance Minister Lim Guan Eng announced that the PIA expansion project would be carried out via PFI as the Federal Government was short of funds.
The project, which is expected to cost more than RM1.2 billion, will raise the airport’s capacity to 16 million passengers per year.