Malaysia Airports has issued a notice of termination to Pestech Technology Sdn Bhd in respect to the contract for the Design, Supply, Installation, Testing, and Commissioning of the Automated People Mover (APM) at KL International Airport (KLIA). PTSB had been appointed by MA Sepang as the Design and Build contractor for the KLIA Aerotrain Replacement Programme on 14 December 2021 through an open tender process.
MAHB said the termination was due to amongst others Pestech’s non-performance, compromising significant project milestones and risking delays to deliver the project within the required deadline. This decision it said was taken by the Board of Directors, in adherence to its principles of governance and based on rigorous monitoring of the progressive development of the APM project by MAHB’s management and its independent consultants. PTSB has been found to be in material breach of its obligations under the contract and had failed to remedy the same within the specified time period.
Following this Notice of Termination, which was preceded by a Notice of Default to PTSB, MA Sepang will be enabled to recommence and complete the works through the engagement of other relevant parties, with a focus on ensuring the
project is completed on schedule.
“This project is of significant importance to ensuring the comfort and convenience of our passengers travelling through KL International Airport. Our focus moving forward is on the timely delivery of the aerotrain while observing stringent quality
control and safety standards of the project, with no compromise to our operations and governance processes,” said Dato’ Sri Iskandar Mizal Mahmood, Managing Director of MAHB.
