There were no cost overruns faced by Malaysia Airports Holding Bhd (MAHB) following the delay in the Kuala Lumpur International Airport 2 project, said Transport Minister Liow Tiong Lai.

In a written reply to a question from Mohd Ariff Sabri Abdul Aziz (DAP-Raub) yesterday, Liow said the project's rising costs were  the result of an increase in the scope of works following the new design concept to fulfil the needs of all the stakeholders.

“Actually, there is no cost overrun but there is an increase in the scope of the job,” the minister said.

Ariff had asked what action had been taken against the the KLIA2 contractor following the project's delay and cost overruns from the original tender price of RM2 billion.

KLIA2 opened on April 30 last year replacing the Low-Cost Carrier Terminal (LCCT) with most budget airlines moving there by May 2.

Previously, it was reported that KLIA 2 was completed at a cost of slightly more than RM4 billion.

Liow, however, said that MAHB was in negotiations and will take further action on the contractor - UEM-Binapuri - by imposing liquidated ascertained damages (LAD).

LAD is defined by the finance ministry as a fine or compensation imposed on a contractor or supplier who has failed to fulfil a contractual obligation as stipulated in the contract.

Normally, this refers to delays in completing a project on time.