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MAHB to save RM50mil annually from upgraded cooling plant at KLIA

KUALA LUMPUR: Malaysia Airports Holdings Bhd (MAHB) is expected to save over RM50 million in operating cost a year at the Kuala Lumpur International Airport (KLIA).

In a statement today, the airport operator said the cost-saving initiative would be underpinned by the upgraded cooling plant at KLIA from next year as part of its long-term sustainable cost containment plans.

The modernised plant will produce cooling energy with higher efficiency that will run on electricity instead of natural gas.

This will reduce overall input cost as the cost for electricity is lower and more stable compared to natural gas.

Another cost saving factor will be the agility of the cost charging mechanism, which allows for periodic reassessment of energy requirements and the subsequent readjustment of the cost accordingly.

MAHB group chief executive officer Datuk Mohd Shukrie Mohd Salleh said the initiative was part of its vigorous cost containment measures in view of the impact from the prolonged pandemic.

“On top of operational efficiency, this latest joint-venture will allow us to preserve our cashflows during this challenging period.

“Additionally, we also stand to gain from the 30 per cent stake in the joint-venture’s earnings contribution and dividend stream in the future,” he said.

This new joint-venture (JV) initiative is between Airport Ventures Sdn Bhd (AVSB) and TNB Engineering Corp Sdn Bhd (TNEC), both respectively wholly-owned subsidiaries of MAHB and Tenaga Nasional Bhd (TNB).

TNEC has been commissioned to operate the plant and supply energy in the form of chilled water (cooling energy) and electricity to KLIA’s main terminal and its associated facilities under a newly incorporated JV entity, Cooling Energy Supply Sdn Bhd (CES).

TNEC, one of Malaysia’s top district cooling systems owners and operators, won the tender bid for this 20-year concession commencing from July 1, 2021.

Under this JV, TNEC will be investing in technology and system upgrades for the existing to run fully on electricity.

With the concessionaire investing about RM183 million for the plant upgrades, the initiative will be a cash conservation and low execution risk exercise for MAHB.

Mohd Shukrie said another added advantage would be the consolidation of the airport’s energy requirements under one provider.

“The upgraded plant will enhance and strengthen the entire power grid at KLIA by leveraging on another TNEC operated plant that is using similar technology and resources to serve klia2, the airport’s second terminal.

“This not only promises scale and redundancy assurance, but also provides value add to potential KLIA Aeropolis projects,” he added.

Source: New Straits Times

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