KUALA LUMPUR: Malaysia Airports Holdings Bhd (MAHB) has finally issued the certificate of practical completion (CPC) to the joint venture of UEM Construction Sdn Bhd and Bina Puri Sdn Bhd (UEMC-Bina Puri JV) for the main terminal building of the RM4 billion klia2 in Sepang.

This comes nine months after the opening of the new low-cost carrier terminal on May 2 last year.

In a filing with Bursa Malaysia yesterday, MAHB said the CPC for the klia2 terminal building was received by the main contractor — the UEMC-Bina Puri JV — on Feb 2, 2015 “wherein the effective date of the CPC is Jan 26, 2015”.

“The defects liability period will also commence on Jan 27, 2015 and expire on Jan 26, 2017,” said the airport operator.

A CPC is a documented verification in which all works and tasks included in a contract have been satisfactorily completed. With the CPC, the responsibility of the terminal building will now be handed over to MAHB (fundamental: 0.5; valuation: 0.6).

MAHB had confirmed a report in The Edge Financial Daily last year that the CPC had not been issued for the klia2 main terminal building as there were “material contractual obligations on the part of the contractor which have not been satisfied”, but did not disclose what those were. Last month, however, MAHB managing director Datuk Badlisham Ghazali had said “minor works such as testing of the fire alarm at certain retail areas (at klia2) still needed to be done”.

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This article first appeared in The Edge Financial Daily, on February 5, 2015.