Funding Model for KKIA Upgrade Explained

KOTA KINABALU: The Transport Ministry has clarified the funding model for the proposed upgrade of Kota Kinabalu International Airport (KKIA). Minister Anthony Loke stated that Malaysia Airports Holdings Berhad (MAHB) will finance the project, ensuring that the upgrade does not rely on public funds.

This funding model is significant as it allows MAHB to recoup its investment without burdening the national budget. Loke explained, “This development model, funded by MAHB, is separate from what has been budgeted.” This approach ensures that the project remains financially sustainable and highlights the importance of private investment in public infrastructure.

The proposed upgrade aims to enhance the airport’s annual capacity and improve its facilities. As part of this expansion, plans include constructing a multi-storey car park and increasing retail spaces to better serve the needs of travelers. The inclusion of more commercial areas will also provide additional revenue streams for the airport.

Furthermore, Loke emphasized that the financial independence of this project allows for a faster implementation timeline. The proposal aims to address the rising demand for air travel in Sabah and to elevate the overall travel experience for passengers.

This model also reflects the government’s commitment to fostering partnerships with private entities in infrastructure development. By leveraging the expertise and resources of MAHB, the government can ensure that KKIA remains competitive and capable of meeting future demands.