LPT3 to be implemented through PPP, successful bidder to fund development

27 Oct 2026, 8:08 AM
LPT3 to be implemented through PPP, successful bidder to fund development
LPT3 to be implemented through PPP, successful bidder to fund development
LPT3 to be implemented through PPP, successful bidder to fund development

KUALA LUMPUR, Oct 27 — The 122km East Coast Expressway Phase 3 (LPT3) will be implemented through privatisation under a public-private partnership (PPP) arrangement via a competitive bidding process or Request for Proposal (RFP), with the successful bidder bearing the full development cost.

Works Minister Datuk Seri Alexander Nanta Linggi said the proposed alignment, stretching from Kampung Gemuruh in Terengganu to Tunjong in Kelantan, will complement LPT1 and LPT2 in connecting Pahang, Terengganu, and Kelantan.

The project’s Statement of Needs has been submitted to the Public Private Partnership Unit under the Prime Minister’s Department to prepare the RFP documents before submitting them to the Cabinet for consideration and a decision.

“The proposal is currently at the RFP document preparation stage,” he said when winding up the debate on the Supply Bill 2027 (Budget 2027) at the policy stage for the Works Ministry in the Dewan Rakyat today.

Nanta added that the government’s current priority is to ensure that the Central Spine Road (LTU) and Kota Bharu-Kuala Krai Highway (KBKK) projects progress smoothly and are completed on schedule.

For the 70.4km KBKK project, its overall physical progress has reached 78.80 per cent, with the Pasir Hor-Kadok stretch fully completed. The remaining five packages are under construction and are expected to be completed in 2027.

The Kelantan section of the LTU, comprising 10 sub-packages worth RM3.08 billion from Kuala Krai to Gua Musang, is expected to be fully completed by 2028.

On delays to LTU Package 3, involving Sections 3B and 3C, he said the appointment of a replacement contractor is in the final stage of the procurement process.

“The Letter of Acceptance is targeted for issuance by mid-November 2026, subject to Finance Ministry approval. This will allow construction work to resume and the remaining work to be completed according to the revised schedule,” Nanta said.

Meanwhile, four of the 35 work packages under the 706km Pan Borneo Highway Sabah project have been completed, while the remaining 31 are targeted for completion in stages by 2030.

Its physical progress has reached 89.54 per cent for Phase 1A and 25.53 per cent for Phase 1B.

For 2027, the Works Ministry has been allocated RM1.146 billion for operating expenditure, up 5.6 per cent, and RM9.736 billion for development expenditure, up 3.0 per cent from RM9.607 billion in 2026.

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