KUANTAN (July 6): The construction of the Kuantan International Airport in Gebeng here is scheduled to begin next year before operating in 2026 with a development cost of RM2 billion, said Pahang Menteri Besar Datuk Seri Wan Rosdy Wan Ismail.
The new airport is also part of plans to develop an aero-space city mixed development project involving an area of 5,042 hectares which he described would be a catalyst for Pahang’s economic growth.
The existing Sultan Haji Ahmad Shah airport here belongs to the Royal Malaysian Air Force (RMAF) and the construction of the new airport was decided at the end of 2019 with approval from the National Physical Planning Council (NPPC) obtained on Oct 21.
“The joint venture project will be developed through the private financing initiative (PFI) which has the concept of Build-Operate-Own (BOO) development where operations of the airport will be handled by the company entirely through the formation of a special purpose vehicle (SPV) namely Pahang Airport Berhad.
“The development of this project is expected to be a catalyst for Pahang’s economic growth involving Gross Development Value (GDV) of RM7.5 billion a year or equivalent to RM150 billion in 20 years besides the state government aiming to capture at least one percent of the Asia Pacific Maintenance, Overhaul & Repair market (MRO) estimated to be worth RM15 trillion.
“The project component involves 70% for MRO and the remaining 30% for operations of the airport itself,” he said in a media statement after witnessing the Memorandum of Understanding (MoU) signing ceremony for the implementation of the project here on Wednesday.
At the ceremony, the State government was represented by Pahang Corporation Sdn Bhd chief executive officer Datuk Mohd Khusaini Harumaini while Gading Group Berhad, as the main developer for both projects, was represented by its executive chairman Datuk Seri Johari Harun.
Also gracing the event was the Regent of Pahang Tengku Hassanal Ibrahim Alam Shah Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah.
Gading Group Berhad, according to Wan Rosdy, has business expertise in the field of aerospace by being a provider of equipment and services for aircraft and machinery or other equipment related to air services.
In addition, Wan Rosdy said the project will open up job opportunities with a target of 20,000 jobs for airport operations and 30,000 other skilled and semi-skilled jobs through the development of the industrial, services and tourism sectors.
The project also takes into account the economic hub factor as it is located in the Gebeng industrial area and near Kuantan Port and the East Coast Rail Link Project (ECRL) and this will attract investors, he added. View source