Pestech: Told you so, MAHB

Pursuant to articles on mother blog, Another Brick in the Wall dated May 26 2021, June 14 2021, July 1 2021, and Aug 1st 2021, our reaction to the latest development on MAHB is "told you so".  

MAHB was long overdue for a new aerotrain. They are not wrong to put out the tender. And the delay by Pestech caused a major embarassment to the country. Foreign passengers were forced to walk when it finally broke down on the way to the terminal.  

MAHB may have comforted themselves with the assurance from Pestech that the problem faced by contractor will be resolved in due time when MACC moved in back in March 2022 in relation to the Aerotrain tender. They never did. 

Efforts to save MAHB from the embarassment of a wrong decision were made, including by this blog and more by The Edge. The tip-off from informer then were quite revealing and right, but was held back from publication to save MAHB the embarassment. 

The then tender committee chairman Tan Sri Dato Zainon Ali was persistent to not allow further delay and proceed with a decision. It was overwhelming that the then Chairman Dato Dr Zambery Kadeer conceded.      

Two years down the road, this happened. For God and Country, we done our part ...

NST reported: 

Pestech's RM743mil aerotrain contract terminated by MAHB

By Azanis Shahila Aman - August 16, 2023 @ 6:27pm

KUALA LUMPUR: Malaysia Airports Holdings Bhd has terminated the RM743 million contract to Pestech International Bhd to build a new aerotrain for Kuala Lumpur International Airport.

The termination was due to Pestech's non-performance on the automated people mover (APM) or aerotrain project in KLIA, MAHB said in a statement today.

The non-performance has compromised significant project milestones and risked delays to deliver the project within the deadline, it added.

This means the airport operator will look for another party or consortium to undertake the project soon, as the disruption of the aerotrain service has caused public outcry.

Pestech, through wholly-owned Pestech Technology Sdn Bhd, secured the job from MAHB's unit Malaysia Airports (Sepang) Sdn Bhd in December 2021.

MAHB said the termination notice was issued to Pestech Technology effective immediately.

The decision was taken by MAHB board of directors, in adherence to its principles of governance and based on rigorous monitoring of the progressive development of the APM project by the 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."

MAHB managing director Datuk Seri Iskandar Mizal Mahmood said the project is of significant importance to ensure the comfort and convenience of its passengers travelling through KLIA.

"Our focus moving forward is on the timely delivery of the aerotrain while observing stringent quality control and safety standards of the project. There will be no compromise to our operations and governance processes," said Iskandar.

Following the notice of termination, which was preceded by a notice of default to Pestech, MAHB said it will be able to recommence and complete the works through the engagement of other parties, with a focus on ensuring the project is completed on schedule.

"Moving forward, MAHB remains committed to assign the necessary resources in order to minimise any potential delays to the APM project."

MAHB added that that it will expedite consultation and discussions with all existing stakeholders of the project for continuity and to mitigate any delays.

"These include working closely with all relevant parties involved in the replacement project of the train's tracks and system, as well as identifying an experienced and credible third-party contractor to ensure consistent progress of all project components," it added.

Another on our agenda was the Subang Airport Regeneration Plan. There were party of interest tampering with the original plan by MAHB and under the new administration, they seemed to waiver from the original plan.  Latest Edge Weekly claimed it have been delayed. 

Seriously hope they stick to the original plan. Air Asia messed up our aviation industry and now another non-aviationist. Nevertheless, MAHB should market our airport abroad. Look at cargo and not waste too much time on people.  

Reminded of how MAS, Khazanah and Mahathir screw up Tajudin Ramli's plan for Hahn Airport. The airport reached an annual volume of 4 million passengers and 300,000 tonnes of cargo before a snag in the management unable to sustain. 

It is worsened by the Covid problem. With the Ukraine war, it is now at a turning point. It could make a comeback though. In aviation, the right owner is necessary. An owner with a business plan. 

Europe-Hahn-Sepang-Asia could have been a major hub to hub logistic link.