KUALA LUMPUR: Malaysia Airports Holdings Bhd
’s (MAHB) wholly-owned subsidiary, Malaysia Airports (Sepang) Sdn Bhd (MA Sepang), has terminated Pestech Technology Sdn Bhd’s contract to supply, design and build an automated people mover (APM) or aerotrain at the Kuala Lumpur International Airport (KLIA).
In a statement, the airport operator said the termination was due to Pestech’s non-performance, compromising significant project milestones and risking delays in delivering the project within the required deadline.
“This decision was taken by MAHB’s board of directors, in adherence to MAHB’s principles of governance and based on rigorous monitoring of the progressive development of the APM project by MAHB’s management and its independent consultants.
“Pestech has been found to be in material breach of its obligations under the contract and has failed to remedy the same within the specified time period,” it said.
To recap, Pestech had been appointed by MA Sepang as the design-and-build contractor for the KLIA Aerotrain Replacement Programme, worth RM742.95mil, on Dec 14, 2021, through an open tender process.
