Tender for PIA expansion project to be called in two months - Loke

GEORGE TOWN - The expansion of the Penang International Airport (PIA) announced in Budget 2023 will be funded by Malaysia Airports Holdings Bhd (MAHB), and the tender for the project will be called in two months’ time.

Transport Minister Anthony Loke Siew Fook said his visit to the airport found an urgent need for the project to be completed immediately.

"The tender for the first phase of the expansion project will be called in two months’ time by MAHB so that work can commence this year. We expect the project to be completed within three to four years.

"Once completed, the airport capacity will be increased to 12 million passengers per annum from the current 6.5 million passengers per annum,” he told reporters after a one-day visit to Penang today.

Loke said the government believes that MAHB is capable of financing the project as it is a profitable airport.

"The cost will be borne using a mechanism that will be agreed upon by both MAHB and Finance Ministry. That is why I don’t announce the cost of the project, as it will be done through an open tender,” he explained.

Loke said PIA is the third busiest airport in Malaysia, and the last time it was upgraded was in 2013.

"This expansion project will not involve any land reclamation and the entire cost will be borne by MAHB,” he said.

Meanwhile, when asked about the Kulim International Airport, Loke said the ministry has not received any application for an aerodrome licence.

Earlier, the minister also visited the Penang ferry terminal, Penang Sentral and paid a courtesy call to Chief Minister Chow Kon Yeow. - BERNAMA