KXP a component of Kedah Aerotropolis project, doesn't involve gov't funds - Sanusi
ALOR SETAR - The Kedah Aerotropolis megaproject which includes the Kulim International Airport (KXP) is a high-impact project that will be developed through a private finance initiative (PFI) without involving Federal Government allocations, says Kedah Menteri Besar Datuk Seri Muhammad Sanusi Md Nor.
He said in this regard, all the state government required was cooperation from Federal agencies to facilitate any matters related to their jurisdictions, such as those concerning the Ministry of Transport (MOT).
"In a less encouraging financial position, the Kedah state government chose to implement the project through a private finance initiative (PFI).
"In general, this project is a catalyst with high potential to attract foreign investment through the opening of a new industrial area for high-tech aerospace and aviation industries," he said in a statement today.
When tabling Budget 2023 on Friday, Prime Minister Datuk Seri Anwar Ibrahim announced the proposal to upgrade the Penang International Airport (LTAPP) and Sultan Abdul Aziz Shah Airport (LTSAAS) in Subang, Selangor, while also proposing to halt the construction of KXP.
Anwar was quoted as saying that the expansion of the two airports was expected to bring about economic growth at a much lower cost than the proposed construction of KXP which was estimated to cost RM7 billion, and therefore, could not be considered in the current situation.
Commenting further, Muhammad Sanusi said that in the context of LTAPP, KXP would not be a competitor as the latter would be operating as a cargo hub while the passenger segment had not yet been considered.
"Therefore LTAPP can continue to focus on the services offered and accept that the KXP project serves to complement, rather than become a competitor.
"I believe the Prime Minister has so far not got a full picture of the KXP project and efforts will be made to brief him on the matter," he said.
The Kedah Menteri Besar hoped that a middle ground could be achieved over the matter for the benefit of the people. - BERNAMA
