The long-delayed RM1.5 billion Kota Kinabalu International Airport (KKIA) upgrade works has finally received a “hurry up” order from the Transport Ministry.

The ministry’s ultimatum follows concerns expressed by State Tourism, Culture and Environment Minister Masidi Manjun.

KK has the second busiest air hub in Malaysia after the Kuala Lumpur International Airport (KLIA).

ong tee keat ktm 151209 ong tee keat Ministry officials issued the order this week after minister Ong Tee Keat visited KK last Friday for AirAsia’s maiden flight to Taipei.

Ong was tight-lipped on the delayed airport works but did say: “Our patience is wearing a bit thin.”

He indicated that the ministry knows the reasons for the delay but would not reveal any details.

The 101.89ha airport is reportedly only 86 percent complete and has been delayed beyond two original deadlines for Package 2 - April 20 and Dec 15 last year.

The upgrade, which will give a new look to the terminal, also involves extending the runway from 3km to 3.8km and related drainage works. Construction began in April 2006.

The ministry is said to be holding discussions with the Finance Ministry which has jurisdiction over the awarding of contracts and tenders for the project.

A main concern of the Transport Ministry appears to be that its ranking as measured by the Key Performance Index and National Key Result Areas would be affected and its minister made a scapegoat for KKIA debacle.

It has been learnt that project consultants KLIA Consultancy Services Sdn Bhd and Malaysia Airports Holdings Bhd (MAHB) have been asked to brief the state government on the matter.

masidi manjun Masidi’s (left) main complaint is that one of the two contractors concerned, Global Upline (GU), “has not been performing to expectations”.

GU, which is handling Package 2, belongs to construction king Ting Pek Khiing of Sarawak. He has been previously noted for completing projects in record time at record low prices with acceptable quality.

“We understand that Global Upline is in financial difficulties and can’t pay their sub-contractors,” said Masidi when contacted.

“The progress payments have been paid by the government on time.”

The other main contractor for the airport upgrade works is WCT Sdn Bhd which handles Package 1. WCT did not meet its August deadline last year either and was supposed to have completed its works last month after being granted an extension.

Negative effects

Masidi said the future of KK as an air hub depended on how the MAHB and the government perform in completing the upgrading works at the KKIA.

He was worried that the delay would give a negative picture to airlines still considering KK as part of their operations.

air asia plane 280907 Airlines currently flying in and out of KK are also affected. AirAsia alone serves seven international and nine domestic destinations from KK.

Masidi had previously denied that the airport contractors faced financial difficulties in continuing with the project. Last July, he dismissed talk that “the airport project was delayed because the state government had not paid the contractors”.

At the time, he blamed the delay on the Royal Sabah Turf Club for not vacating in time the land it occupied at the end of the runway. It has since moved to Tambalang in Tuaran.

Sources said the upgrade works is facing cost over-runs which the government is loathe to pick up. Package 1 consists of the construction of a terminal and landside infrastructure. Package 2 will see the construction of a new control tower, Terminal 2 and airside infrastructure.

The KK International Airport belongs to MAHB, a public-listed government-linked corporation.

It is certain is that the delay at KK airport has caused revenue losses not only to MAHB but also to the state and federal governments.

Some 90 percent of tourist arrivals in Sabah are by air. The target is 3.5 million tourists for this year. KKIA’s incomplete state could well affect this projection.