Malaysia Airports imposes a RM9.1 million fine on the IJMC-Pestech joint venture for failing to complete the new KLIA aerotrain project on schedule.
KUALA LUMPUR: Malaysia Airports Holdings Bhd (MAHB) has imposed a RM9.1 million penalty on the contractors for the new KLIA aerotrain project.
The Ministry of Transport confirmed the ‘Liquidated and Ascertained Damages’ (LAD) was levied on the ALSTOM IJM Construction Sdn Bhd and Pestech Technology Sdn Bhd joint venture.
The penalty was for their failure to complete the project at Kuala Lumpur International Airport.
READ MORE: Independent assessors confirm KLIA Aerotrain system is functioning as intended
The fine was imposed for a 91-day period from April 1, 2025 to June 30, 2025.
“As stated in the contract, the amount of LAD imposed is RM100,000 per day or a total amount of RM9.1 million,” the ministry said in a parliamentary reply.
The statement was in response to a question from Khoo Poay Tiong (PH-Kota Melaka) regarding penalties for the project’s unsatisfactory delivery.
MAHB had earlier stated that an independent rail assessor confirmed the aerotrain system was operating as planned.
It said service disruptions since operations began were normal for the early phase of a complex rail system.
The assessor found the disruptions did not pose a safety risk to passengers.
Structured engineering controls and ongoing monitoring were in place to manage the issues effectively.