LPT3 Will Proceed Under Public-Private Partnership Model - Ahmad Maslan

The East Coast Expressway 3 (LPT3) project will proceed through a public-private partnership with no cost to the government, says Deputy Works Minister Datuk Seri Ahmad Maslan.

He said documents have been submitted to the Prime Minister’s Department’s PPP Unit, and a request for proposal will be issued soon to attract interested concessionaires.

The RM9.8 billion, 122 km tolled highway will connect Kampung Gemuroh in Kuala Terengganu to Kampung Tunjong in Kota Bharu, Kelantan.

"The ministry is still assessing the project’s feasibility, including concessionaires’ interest and the viability of an estimated RM70 end-to-end toll rate," he said in Feb, adding no tender has been awarded yet as the ministry must first go through the RFP process.

Maslan further noted that not all existing toll highways are profitable, so careful evaluation is needed before approval.

For the record, a feasibility study for LPT3 was first done in 2009, when costs were estimated at RM2.86 billion, but the amount has since increased due to inflation and design changes.

If approved, the highway will be built under the Build-Operate-Transfer (BOT) model, with private companies funding and managing construction before handing it back to the government.