PETALING JAYA: Malaysia Airports (Sepang) Sdn Bhd (MA Sepang) has cancelled Pestech Technology Sdn Bhd’s (Pestech) contract due to the company’s failure to fulfill its contractual obligations, according to a statement made in the Dewan Rakyat. The decision was made by the board of directors of Malaysia Airports Holding Berhad (MAHB) in compliance with MAHB administrative principles and based on continuous monitoring of the Automated People Mover (APM) project progress by MAHB and independent consultants, said Transport Minister Anthony Loke in a written parliamentary reply on Wednesday (Nov 1).
In response to a question by Ayer Hitam MP Datuk Seri Dr Wee Ka Siong regarding the justification behind the cancellation of the RM742.95 million contract awarded to Pestech for the construction of a new aerotrain system in KLIA, Loke stated, “The termination occurred as Pestech did not fulfill its contractual obligations, which had an adverse impact on the project’s progress and posed a risk of delay in project completion.”
Loke further explained that the termination notice allows MA Sepang to continue and complete the project by engaging other contractors, ensuring adherence to the project timeline. Additionally, MA Sepang has conducted negotiations and discussions with all stakeholders involved in the APM project in order to minimize the potential for delays. Loke emphasized the importance of collaboration with experienced third-party contractors to maintain consistent operation of all APM project components.
On December 14, 2021, through an open tender process, MA Sepang appointed Pestech as the design and build contractor for the KLIA Aerotrain Replacement Programme worth RM742.95 million. The cancellation of Pestech’s contract has been attributed to its failure to address issues within the specified timeframe and comply with its obligations, thereby impeding the project’s progress.
Loke expressed confidence that the termination and subsequent actions taken by MA Sepang will facilitate the successful completion of the project within the established timeline.
