ALOR SETAR, Aug 2 ― The Kedah government signed a joint venture agreement with ECK Group today to build the Kulim International Airport (KXP).
In the joint venture agreement, a special purpose vehicle (SPV) will be set up as the main owner and developer of the KXP project.
According to a statement by Kedah Mentri Besar Muhammad Sanusi Md Nor, ECK will own 80 per cent of the SPV’s equity while the Kedah state government will own the remaining equity under the Kedah Development Corporation’s subsidiary, KXP AirportCity Holdings Sdn Bhd.
“We expect the KXP project will be fully completed by 2026 and after that we will be able to see huge changes to Kedah’s economic landscape,” he said in his statement.
He said KXP will play a major role in turning Kedah into a halal industry and e-commerce hub for the Asean region on top of contributing to the pharmaceutical and cargo industries.
“This airport will be the airline industry’s recovery hub and regional disaster operations centre due to its position in the middle of South-east Asia,” he said.
He said the airport is also expected to contribute up to RM1.186 billion to the country’s Gross National Income by 2026.
He added that KXP will create between 15,000 and 18,000 job opportunities for locals.
“It is the state’s hope that KXP will be the economic game changer for the country and the northern region,” he said.
The first phase of the project is expected to cost RM6 billion which included land acquisition costs.
The project will also extend to other projects such as the construction of four main infrastructures projects including the Northern Corridor Highway, a new North-South Highway access road at Tikam Batu, upgrading works on the existing access road to Sungai Petani and a new railway track connecting Tasik Gelugor to Kulim Hi Tech Park to Sungai Petani.
The joint venture agreement was signed at Wisma PKNK in Alor Setar by Muhammad Sanusi, who is also the KXP AirportCity Holdings chairman, and ECK group managing director Tan Sri Khor Eng Chuen.