Kuala lumpur: Malaysia Airports Holdings Bhd (MAHB) has imposed a ‘Liquidated and Ascertained Damages’ (LAD) penalty amounting to RM9.1 million on the IJMC-Pestech Joint Venture, comprising ALSTOM IJM Construction Sdn Bhd and Pestech Technology Sdn Bhd, over their failure to complete the new aerotrain project at Kuala Lumpur International Airport (KLIA).

According to BERNAMA News Agency, the Ministry of Transport (MOT) stated that the penalty was imposed due to the contractors’ inability to meet the project completion timeline. The penalty covers a period of 91 days, from April 1, 2025, to June 30, 2025, with an LAD rate set at RM100,000 per day, totaling RM9.1 million.

The MOT detailed the contract terms in a response to a parliamentary inquiry from Khoo Poay Tiong (PH-Kota Melaka), who sought clarification on the penalties imposed on the contractors for not delivering the aerotrain project satisfactorily.

In a related development, MAHB noted that an independent rail assessor confirmed the KLIA Aerotrain system was functioning as intended. While service disruptions have occurred since the system became operational, these were deemed typical during the initial phase of a complex rail system. The assessor also indicated that the disruptions did not pose a safety risk, as structured engineering controls and ongoing monitoring were in place to manage the issues effectively.