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Highlight Certification for klia2 delayed
by Cals Wed 05 Feb 2014, 10:09
Highlight Certification for klia2 delayed
Business & Markets 2014
Written by Levina Lim & Isabelle Francis of theedgemalaysia.com
Wednesday, 05 February 2014 09:03
KUALA LUMPUR: Malaysia Airports Holdings Bhd (MAHB) has thrown the ball in its main contractor’s court to complete the construction of the RM4 billion klia2 in Sepang in time for the low-cost carrier terminal’s opening on May 2, 2014.
This follows the failure of the UEM Construction Sdn Bhd and Bina Puri Holdings Bhd joint venture (UEMC-Bina Puri JV) to secure a Certificate of Completion and Compliance (CCC) for the klia2 terminal building, which was scheduled for Jan 31 this year.
In a filing with Bursa Malaysia yesterday, the airport operator said it has yet to receive the CCC for the klia2 terminal building from UEMC-Bina Puri JV.
A CCC is a document certified by a competent authority, such as a professional architect or engineer, that the project works meet the required specifications. The klia2 terminal building was scheduled to be completed together with the CCC by end-January to enable operational readiness and airport transfer (ORAT) to commence for three months before the opening date.
“MAHB will continue to engage with UEMC-Bina Puri JV on the next course of action in regard to the issuance of the CCC and the commencement of ORAT. All efforts are being taken to support UEMC-Bina Puri JV towards the completion of the terminal building to enable the opening of klia2 on May 2,” said MAHB in the filing.
In a joint statement issued late last night, UEMC-Bina Puri JV said it has yet to obtain the CCC for its work package due to an “unexpected issue which occurred recently during a follow-up inspection”.
“The JV partners have discussed and are working with MAHB, the authorities, consultants and architects to rectify the matter, and rectification work will commence immediately.
“At the same time, UEMC-Bina Puri JV will work together with MAHB on the next course of action in regard to the issuance of the CCC and the commencement of ORAT,” it stated.
It did not disclose what the “unexpected issue” was, but according to a source close to the matter, the delay in obtaining the CCC was due to UEMC-Bina Puri failing to obtain the required letters of recommendation from the Fire and Rescue Department and Sepang Municipal Council.
“It is understood that the UEMC-Bina Puri JV had not completed the fire-fighting works (at the terminal building) and some rectification works needed to be done to its sewerage system. They found cracks in the sewerage system because of poor backfill works,” the source told The Edge Financial Daily.
However, the source added that the CCC merely represents one of the timelines and does not mean that the May 2 deadline will not be met.
When contacted by The Edge Financial Daily yesterday, Bina Puri group executive director Matthew Tee Kai Woon said “all parties are working hard to meet the May 2 deadline”.
“It’s a matter of teamwork,” he said, adding that Bina Puri is committed to delivering its portion of the CCC.
In July 2010, the UEMC-Bina Puri JV was awarded the contract to undertake the design, construction and maintenance of the new LCCT’s main terminal building, satellite building, sky bridge and piers. The package was expected to be completed within 20 months.
Bina Puri’s 40% portion of the project is worth RM400 million of the total contract of RM997.2 million, while UEM Construction Sdn Bhd (UEMC), a wholly-owned subsidiary of UEM Builders Bhd, holds a 60% stake in the JV.
The works package awarded to the JV is one of 32 packages awarded by MAHB to various companies at the start of the project.
In June last year, MAHB slapped the UEMC-Bina Puri JV with liquidated ascertained damages of RM199,445.40 per day or RM6 million a month for its failure to meet the approved June 15, 2013 deadline.
It also issued a Certificate of Non-Completion to the JV for its inability to complete the work by the deadline.
In a note to clients yesterday, HwangDBS Vickers Research Sdn Bhd said Bina Puri shares may take a hit due to the delay in handing over the main terminal of klia2.
Bina Puri shares closed unchanged at 70 sen yesterday.
This article first appeared in The Edge Financial Daily, on February 05, 2014.
Business & Markets 2014
Written by Levina Lim & Isabelle Francis of theedgemalaysia.com
Wednesday, 05 February 2014 09:03
KUALA LUMPUR: Malaysia Airports Holdings Bhd (MAHB) has thrown the ball in its main contractor’s court to complete the construction of the RM4 billion klia2 in Sepang in time for the low-cost carrier terminal’s opening on May 2, 2014.
This follows the failure of the UEM Construction Sdn Bhd and Bina Puri Holdings Bhd joint venture (UEMC-Bina Puri JV) to secure a Certificate of Completion and Compliance (CCC) for the klia2 terminal building, which was scheduled for Jan 31 this year.
In a filing with Bursa Malaysia yesterday, the airport operator said it has yet to receive the CCC for the klia2 terminal building from UEMC-Bina Puri JV.
A CCC is a document certified by a competent authority, such as a professional architect or engineer, that the project works meet the required specifications. The klia2 terminal building was scheduled to be completed together with the CCC by end-January to enable operational readiness and airport transfer (ORAT) to commence for three months before the opening date.
“MAHB will continue to engage with UEMC-Bina Puri JV on the next course of action in regard to the issuance of the CCC and the commencement of ORAT. All efforts are being taken to support UEMC-Bina Puri JV towards the completion of the terminal building to enable the opening of klia2 on May 2,” said MAHB in the filing.
In a joint statement issued late last night, UEMC-Bina Puri JV said it has yet to obtain the CCC for its work package due to an “unexpected issue which occurred recently during a follow-up inspection”.
“The JV partners have discussed and are working with MAHB, the authorities, consultants and architects to rectify the matter, and rectification work will commence immediately.
“At the same time, UEMC-Bina Puri JV will work together with MAHB on the next course of action in regard to the issuance of the CCC and the commencement of ORAT,” it stated.
It did not disclose what the “unexpected issue” was, but according to a source close to the matter, the delay in obtaining the CCC was due to UEMC-Bina Puri failing to obtain the required letters of recommendation from the Fire and Rescue Department and Sepang Municipal Council.
“It is understood that the UEMC-Bina Puri JV had not completed the fire-fighting works (at the terminal building) and some rectification works needed to be done to its sewerage system. They found cracks in the sewerage system because of poor backfill works,” the source told The Edge Financial Daily.
However, the source added that the CCC merely represents one of the timelines and does not mean that the May 2 deadline will not be met.
When contacted by The Edge Financial Daily yesterday, Bina Puri group executive director Matthew Tee Kai Woon said “all parties are working hard to meet the May 2 deadline”.
“It’s a matter of teamwork,” he said, adding that Bina Puri is committed to delivering its portion of the CCC.
In July 2010, the UEMC-Bina Puri JV was awarded the contract to undertake the design, construction and maintenance of the new LCCT’s main terminal building, satellite building, sky bridge and piers. The package was expected to be completed within 20 months.
Bina Puri’s 40% portion of the project is worth RM400 million of the total contract of RM997.2 million, while UEM Construction Sdn Bhd (UEMC), a wholly-owned subsidiary of UEM Builders Bhd, holds a 60% stake in the JV.
The works package awarded to the JV is one of 32 packages awarded by MAHB to various companies at the start of the project.
In June last year, MAHB slapped the UEMC-Bina Puri JV with liquidated ascertained damages of RM199,445.40 per day or RM6 million a month for its failure to meet the approved June 15, 2013 deadline.
It also issued a Certificate of Non-Completion to the JV for its inability to complete the work by the deadline.
In a note to clients yesterday, HwangDBS Vickers Research Sdn Bhd said Bina Puri shares may take a hit due to the delay in handing over the main terminal of klia2.
Bina Puri shares closed unchanged at 70 sen yesterday.
This article first appeared in The Edge Financial Daily, on February 05, 2014.
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