MAHB expects LAD talks to complete ‘this year’

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KUALA LUMPUR: Malaysia Airports Holdings Bhd (MAHB) expects to complete its discussions with the joint venture of UEM Construction Sdn Bhd and Bina Puri Holdings Bhd (UEMC-Bina Puri JV) "this year" over the quantum of the liquidated and ascertained damages (LAD) that the JV will have to pay for causing the delay in the completion of KLIA2 in Sepang.

MAHB managing director Datuk Badlisham Ghazali said MAHB (fundamental: 1; valuation: 1.4) said this when met at the Global Airport Development Asia 2015 conference here yesterday.

On the quantum MAHB is looking at, he only said, "I have to present it to the board" and that MAHB, as a listed entity, will make the announcement via Bursa Malaysia.

Transport Minister Datuk Seri Liow Tiong Lai revealed in Parliament on Monday that MAHB was still in talks with the UEMC-Bina Puri JV. MAHB on Feb 4 this year said the CPC for KLIA2’s terminal building was received by the UEMC-Bina Puri JV on Feb 2, “wherein the eff ective date of the CPC was Jan 26”.

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

 

This article first appeared in The Edge Financial Daily, on June 10, 2015.