KOTA KINABALU: Global Upline Sdn Bhd (GUSB) announced that it has stopped all works to develop the Kota Kinabalu International Airport (KKIA) effective yesterday.
Its chief advisor, Tan Sri Ting Pek Khiing, said the Ministry of Transport (MOT) failed to fulfill its promise to issue a Certificate of Practical Completion (CPC) to GUSB upon completion of section one of the works in Package 2 of the project by April 30 this year.
This, he said, meant the runway was not safe for landing and take-off of aircraft as well as other operations on the runway since it had been certified non-complete by MOT and would be closed.
“By April 30 this year, GUSB had practically completed section one of the works by using its best financial endeavour and fully utilised its available resources.
“MOT, however, refused to issue the CPC and subsequent release of 50 per cent of the Banker’s Guarantee (BG) and instead, issued a Certificate of Non-Completion (CNC) and imposed Liquidated Damages (LAD),” he said in a statement here yesterday.
According to Ting, section one included runway extension, resurface of existing runway, new taxiways A, C, D, E and K, installation of a 7km high tension cable and three automated pump stations.
Apart from the KKIA project, Ting said MOT had also refused to pay RM113 million contractual claim for the upgrade of Kuching International Airport and RM21 million for Labuan Airport, and left GUSB with no choice but to commence legal action to recover the outstanding payment.-Bernama