LPT3 Construction Cost Rises Three-Fold To RM9.8 Billion

The estimated cost of constructing the East Coast Expressway 3 (LPT3), connecting Kampung Gemuroh in Kuala Terengganu to Kampung Tunjong in Kota Bharu, Kelantan, is now projected at RM9.8 billion. This is a significant increment from the RM2.867 billion initially estimated in 2009. 

According to Deputy Works Minister Datuk Seri Ahmad Maslan this three-fold increment is the reason for the shift in the financing model, which will now rely entirely on toll collection as opposed to LPT1 and LPT2. Both LPT1 and LPT2, were federally funded and charged tolls solely for maintenance whereas LPT3 will operate on a profit-return toll system. 

Maslan further added, “The cost for LPT1, from Karak to Jabor, was RM1.477 billion, and toll charges were limited to maintenance. LPT2, opened in 2015, cost RM4.37 billion, running from Jabor to Kuala Telemong with tolls set at RM0.984/km, also for maintenance.” In contrast, LPT3 will be entirely toll-funded, with a projected toll rate of RM0.60/km and an end-to-end toll cost of RM70.

Ahmad further detailed that the construction proposal for LPT3 is now being reviewed by the Public-Private Partnership Unit (UKAS) under the PM’s Department. If approved, it will proceed to the Cabinet for final consideration. 

The LPT3 project which will be modelled via a public-private partnership (PPP) model will undergo a transparent competitive request for proposal (RFP) process.

The Public Works Department (JKR), has been refining alignment and cost since 2020 due to the outdated nature of the original 2009 feasibility study. LPT3, if approved, would become a key infrastructure project to enhance connectivity and drive economic growth in the East Coast region.