WORK HAS been halted on developments at Gateway Airport, Pietersburg following the cancellation of an agreement between the airport authority and Malaysian group Penambang Airport Development for the management and refurbishment of what was once an air force base.
In terms of the agreement the Malaysians were to have injected R5 billion into improvements during the next 15 years. The first phase of development, costing R1 billion, would have included the construction of a cargo centre of international standard.
But the board of Gateway terminated the agreement after Penambang failed to meet financial obligations.
The termination of the contract comes after months of uncertainty among staff, who had their pension and medical aid benefits suspended after the Malaysians failed to pay the authorities. The provincial government, sole shareholder in Gateway prior to the lease agreement being signed, came to the rescue, with its departments of finance, economic affairs and tourism having paid salary bills for the 70-strong staff since last October.
Now the airport authority together with the provincial government are discussing future plans which include funding until a suitable partner for the development can be found.
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