LPT3’s winning bidder will foot the bill, Works Ministry expects the cost to top RM10b

Deputy Works Minister Datuk Seri Ahmad Maslan says no hybrid financing has been proposed for the East Coast Expressway Phase 3 (LPT3), which is expected to top RM10 billion. — Picture by Raymond Manuel

By Malay Mail

First Published: Wednesday, 11 Nov 2026 12:16 PM MYT

KUALA LUMPUR, Nov 11 — The government has not proposed a hybrid financing model for the East Coast Expressway Phase 3 (LPT3), even though it adopted one for a highway project in Penang, Deputy Works Minister Datuk Seri Ahmad Maslan said today.

He added that the proposed 122km expressway would instead be developed through a public-private partnership (PPP), with the successful bidder bearing the full construction cost, the New Straits Times reported.

“Hybrid financing is something new. However, LPT3 must be considered alongside all the infrastructure projects the government has announced and implemented.

“So far, no hybrid financing has been proposed,” he was quoted saying in the Dewan Rakyat.

He was responding to a question from Dungun MP Wan Hassan Mohd Ramli, who asked why the government had not considered a financing arrangement similar to the one used for the  RM3 billion Juru-Sungai Dua traffic dispersal project in Penang.

Wan Hassan said the approach involved 60 per cent government funding and 40 per cent financing from institutions such as PLUS Malaysia Bhd, under the Public-Private Partnership Master Plan 2030.

He questioned what had prevented the government from adopting the same model for LPT3.

Ahmad said the government had to weigh its existing investments in major east coast transport infrastructure before deciding on a financing arrangement.

He cited the Kota Bharu-Kuala Krai Expressway, which costs RM2.3 billion and is fully government-funded, with completion targeted for the end of 2027.

The RM7.7 billion Central Spine Road is also government-funded and toll-free, with completion expected by mid-2028.

Ahmad also pointed to the RM52.43 billion East Coast Rail Link as part of the government’s broader transport development programme.

He said preliminary studies between 2020 and 2022 put LPT3’s construction cost at RM9.8 billion, though he expected it to exceed RM10 billion under current conditions.

The government has decided to implement LPT3 through a competitive Request for Proposal (RFP) process under the PPP model.

The Works Ministry has submitted its statement of needs to the Public-Private Partnership Unit under the Prime Minister’s Department.

Ahmad said the unit is still preparing the RFP documents before the proposal could be taken to the Cabinet for consideration.

LPT3 was first mooted about two decades ago, with its cost estimated at RM2.867 billion in 2009.

The proposed alignment will run from Kampung Gemuruh in Terengganu to Tunjong in Kelantan, completing the existing East Coast Expressway network.

Ahmad said in July that the federal government had opted for the PPP route because of financial constraints.

Wan Hassan had questioned that decision at the time, noting that Terengganu’s claim for RM1.243 billion in reimbursement for LPT2 construction costs remained unresolved.