KUALA LUMPUR: The estimated cost for the proposed construction of the East Coast Expressway 3 (LPT3) from Kampung Gemuroh, Kuala Terengganu, to Kampung Tunjong, Kota Bharu, Kelantan, is expected to rise to RM9.8 billion compared to the RM2.867 billion estimated in 2009.
Deputy Works Minister Datuk Seri Ahmad Maslan said the cost increase was because the financing model used for the construction of the highway was based on profit returns from toll collection.
“For LPT1, the cost was RM1.477 billion from Karak to Jabor, and the toll charged was only for maintenance. For LPT2, opened in 2015, the cost was RM4.37 billion from Jabor to Kuala Telemong, with tolls set at 9.84 sen per km, 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 said in response to a supplementary question by Shaharizukirnain Abd Kadir (PN-Setiu) regarding the LPT3 project financing model during the question-and-answer session in the Dewan Rakyat today.
Responding to Shaharizukirnain’s initial question on the Cabinet’s decision regarding the construction of LPT3, Ahmad said the request for proposal (RFP) process for LPT3 was currently under review by the Public-Private Partnership Unit (UKAS) under the Prime Minister’s Department (PMD).
“If approved by the committee at UKAS PMD, the RFP proposal for the LPT3 project will be submitted to the Cabinet for consideration and approval,“ he said.
Asked about the factors necessitating a review of the initial 2009 study on the highway alignment, the Pontian MP said it was to further refine the alignment and cost of the proposed project, which was planned to be implemented through a public-private partnership (PPP) via a competitive RFP bidding process.
“Given that the initial feasibility study was conducted 15 years ago, the Ministry of Works (KKR), through the Public Works Department (JKR), initiated preliminary works in 2020 to refine the alignment and costs,“ he said.
The KKR conducted the LPT3 Feasibility Study in 2009 to assess the technical and economic viability of the proposed alignment, with an estimated project cost of RM2.867 billion at the time.
