PUTRAJAYA, Feb 9 — The Cabinet has, in principle, agreed to the new material terms of the Operating Agreement (OA) that grants a concession to Malaysia Airport Holdings Bhd (MAHB) to operate, manage, maintain and develop 39 airports and airfields (Short Take-Off and Landing Airports, or STOLports) in Malaysia until 2069.
Transport Minister Anthony Loke said with Cabinet’s agreement reached on February 2, the previous contract has been cancelled while the new OA and the related Lease Agreement will be signed and finalised by the end of March.
“This is a continuation of the old agreement… the difference is that it gives MAHB the flexibility in developing a more competitive and effective airport,” he told a media conference today.
Loke said the government and MAHB would have flexibility in the method of funding airport development costs by using either allocation from the government via the Development Expenditure or MAHB through its suitable investment recovery model mechanism.
“The method, however, is subject to the mutual agreement of both parties, with the weighted average cost of capital to be determined only when a project is implemented and subject to government approval,” he said.
An airport development trust account would be set up to receive contributions from airport users, the public and also airlines without involving government funds.
“A total of 50 per cent of the Passenger Service Charge component that is taken into account in the calculation of the User Fee will be channelled to the trust account,” Loke said.
However, the government also has the right to restructure the airport industry through clustering, carving out, divestment of airports, closure of existing airports or terminals or the restructuring of the ownership of any of the facilities subject to mutual consent.
He said the new material terms of the OA will also enable the implementation of a more competitive commercial development plan and has the potential to enhance the government’s income through revenue sharing derived from government-owned land that is developed by MAHB.
MAHB can plan better long-term development for all airports under its supervision, taking into account the company’s expertise and experience in the relevant field both domestically and abroad.
“The government’s burden will also be eased, with the development costs taken over by MAHB which, at the same time, can forge cooperation with any party that is interested in investing in the industry,” Loke said.
The minister also announced the Kuala Lumpur International Airport (KLIA) and Kuala Lumpur International Airport 2 (klia2) would be rebranded as KLIA Terminal 1 and KLIA Terminal 2, so as to achieve high value in marketing services at the airports.
“This implementation is expected to help increase the global competitiveness of the country’s air transport services as well as revive the aviation sector for the benefit and well-being of the people based on the Madani Malaysia concept,” he said.
— Bernama
