MAHB loses appeal against Penang airport contractor claim, to pay additional RM8.7 mil

KUALA LUMPUR (April 6): Malaysia Airports Holdings Bhd has been instructed by the Court of Appeal to pay an additional RM8.71 million in its dispute with the contractor it appointed for the Penang International Airport upgrade works.

This brings the total sum awarded to the contractor, Syarikat Pembinaan Anggerik Sdn Bhd (SPASB), to RM18.64 million, MAHB said in its filing.

SPASB had claimed a sum of RM66.83 million, and in Sept 2021 received an award from the High Court to the tune of RM9.93 million payable by MAHB for balance of work payments. The sum was prior to the appeals by both parties at the appellate court.

MAHB said it is “currently taking legal advice” on the matter.

The airport operator engaged SPASB to upgrade the airport in Bayan Lepas in 2010. The upgrading works involved renovating the main terminal building as well as upgrading the drainage system near the airport runways.

The completion of the work, initially scheduled for mid-2012, was delayed for months due to problems such as flooding and the collapse of parts of the ceiling.

SPASB, in the suit filed in 2017, said it was entitled to claim for loss and damages due to unexpected acceleration of the relevant portion of the work.

Shares of MAHB settled unchanged at RM6.70, giving it a market capitalisation of RM11.12 billion. Year to date, the counter is up 2.13%.