Malaysia’s Ministry of Finance (MOF) has granted approval for airport operator Malaysia Airports to proceed with the expansion of Penang International Airport, located on the southeastern tip of Penang Island.
Recent reports had quoted Penang chief minister Chow Kon Yeow as saying that certain issues had hampered the progress of the expansion project.
In response, Raja Azmi Raja Nazuddin, group CEO of Malaysia Airports, said, “There is good news for the chief minister and Penangites as the approval from the MOF to allow Malaysia Airports to immediately proceed with the expansion plans in phases has just been received.”
Malaysia Airports has been working on the expansion project for more than two years and had brought in consultants to draw up the detailed construction plans after the necessary engagement with the Ministry of Transport (MOT), Malaysian Aviation Commission (MAVCOM) and the Penang state government.
The plans will be submitted to the local council (Majlis Bandaraya Pulau Pinang) at the end of July 2019 in order to obtain final approval.
Malaysia Airports is now in discussion with various parties on the options for investment and funding models. An application for Malaysia Airports to fully fund the project under the proposed MAVCOM Regulated Asset Base (RAB) framework has already been submitted and is waiting for approval.
Once the necessary plans are approved by the city council, construction is expected to start in the first quarter of 2020.