ALOR STAR: The state government is requesting a meeting with Prime Minister Datuk Seri Anwar Ibrahim to clear the air over the proposed Kedah Aerotropolis project, specifically regarding its funding.
Menteri Besar Datuk Seri Muhammad Sanusi Md Nor said the state wished to make it clear to the prime minister that the Kedah Aerotropolis project is a private funding initiative (PFI), instead of being funded by the federal government.
"I am made to understand that the prime minister believed that the project will require funding from the federal government.
"Since the federal government's coffers are in difficult times, it is understood if the government has the view that the project should be put on hold.
"Hence, I wish to meet the prime minister personally to explain that the Kedah Aerotropolis and all its components will be developed through PFI from private investors," he told reporters after chairing the state executive council meeting in Wisma Darul Aman today.
Sanusi said it was imperative to secure the federal government's support for the project, dubbed a game-changer for Kedah and its neighbouring states of Penang, Perak and Perlis.
He had instructed state-owned KXP AirportCity Holdings to submit a request for a meeting with the prime minister to brief him on the project.
Sanusi said the state government has shortlisted two companies for final evaluation before deciding on the Kedah Aerotropolis turnkey developer.
He said they were among 17 companies which had submitted a proposal to develop the project.
"At the same time, we're focusing on resolving several technical issues regarding the legal aspects of the project since we need approval from the federal government, in particular, the Transport Ministry before proceeding with the land acquisition process," he said.
Kedah Aerotropolis is slated to be a catalyst project to transform the state into Southeast Asia's regional aerospace industry and airfreight cargo hub.
In October, several global industrial players had entered an agreement with KXP AirportCity Holdings to participate in the project.