ALOR SETAR, July 2 — The proposed Kulim International Airport (KXP) project, which is the Kedah state government’s top priority, is expected to cost RM6.8 billion, said Minister in the Prime Minister’s Department (Economy) Datuk Seri Mustapa Mohamed.

He said he was given to understand the land acquisition cost was RM2.5 billion while the cost of building the terminal and related works, including the runways, came to RM2.5 billion.

"Another important component is the construction of a highway from Kulim to Sungai Petani, which is expected to cost RM1.8 billion,” he said after meeting Mentri Besar Muhammad Sanusi Md Nor at Wisma Darul Aman today.

Mustapa expressed hope that KXP could be given attention in the 12th Malaysia Plan which would soon be tabled in the parliament.

He said several important aspects on KXP in relation to the cost and financing method had been discussed with the state government.

The financing method, whether through borrowings or privatisation, had not been finalised, he said.

"It has been suggested that the highway linking Kulim and Sungai Petani should be built through privatisation. However, no final decision has been made,” he said.

 On the federal government’s ability to undertake the KXP project, Mustapa said besides the priority given by the state government, the financial situation at the federal level must also be taken into consideration.

"I was informed that several decisions have been made relating to this matter (KXP) and it is understood that these have been tabled and discussed during the Northern Corridor Implementation Authority (NCIA) meetings.

"But we have not made a final decision. That is why we have come to find out what is the highest priority for Kedah and today we were informed (the priority) is KXP,” he said. — Bernama