Government Hasn’t Finalised RM9.8b LPT3 Project - Ahmad Maslan

Deputy Works Minister Datuk Seri Ahmad Maslan told Dewan Rakyat yesterday that the government is still assessing the feasibility of the proposed East Coast Expressway 3 (LPT 3), particularly in terms of its viability for concessionaires which is expected to cost RM9.8 billion.

Ahmad Maslan stated that the government must undergo the request for proposal (RFP) process prior to awarding a tender for the fully tolled highway that would extend from Kampung Gemuroh in Kuala Terengganu to Kampung Tunjong in Kota Bharu, Kelantan.

“We need to determine if concessionaires are interested, considering the toll from end to end (Kampung Gemuroh to Kampung Tunjong) is expected to be RM70. The question is whether it will be viable and competitive.

“Currently, not all 33 toll concessionaires in the country are making a profit – some are even operating at a loss. That is why LPT3 remains under review, with no final decision made,” he said during the oral question-and-answer session. 
The megaproject, which was initially anticipated to cost RM2.867 billion in 2009, suffered a cost increase due to the financing strategy employed for highway construction, which was reliant on toll collection profits. According to Ahmad Maslan, the LPT1 cost RM1.477 billion from Karak to Jabor, with the toll payable only for upkeep. LPT2, which launched in 2015, cost RM4.37 billion from Jabor to Kuala Telemong, with tolls set at 9.84 sen per kilometre, also for maintenance.

"In other words, LPT1 was entirely funded by the federal government, while LPT2 was also funded by the federal government. However, the proposed LPT3 will be fully based on a toll system. This explains its cost of RM9.8 billion or 60 sen per km, with an end-to-end toll cost of RM70, he added, responding to a question by Shaharizukirnain Abd Kadir (PN-Setiu) regarding the LPT3 project financing model during the question-and-answer session in the Dewan Rakyat last November.