LPT3 to be implemented via PPP, with successful bidder bearing full development cost

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LPT3 via PPP on the East Coast

Highlights

LPT3 will be implemented through PPP, with the successful bidder required to bear the entire development cost under the RFP documents currently being prepared.
The KBKK project has achieved 78.80% physical progress and is expected to be fully completed in 2027, while the RM3.08 billion LTU project is expected to be completed in 2028.
The Ministry of Works has received an allocation of RM1.146 billion for operating expenditure (+5.6%) and RM9.736 billion for development expenditure (+3.0%) in 2027.

This article was translated from the original. Read the original version by our correspondent here.

LPT3 RFP enters preparation stage

As reported by The Edge Malaysia, Works Minister Datuk Seri Alexander Nanta Linggi said the project proposal is now at the stage of preparing the request for proposal documents, which will then be submitted to the Cabinet for consideration and a decision.

He said the project requirements statement had been submitted to the Public-Private Partnership Unit under the Prime Minister's Department to prepare the RFP documents for a competitive bidding process. Under this approach, the successful bidder will bear the project's entire development cost.

Nanta said this while winding up the debate on the Supply Bill 2027, Budget 2027, at the policy stage for the Ministry of Works in the Dewan Rakyat on Tuesday.

Progress on other projects and 2027 allocation

He said the government's current priority is to ensure that the Central Spine Road (LTU) and Kota Bharu-Kuala Krai Highway (KBKK) projects proceed smoothly and are completed on schedule. The KBKK project, which spans 70.4 kilometres, has achieved 78.80% overall physical progress. The Pasir Hor-Kadok stretch has been fully completed, while the remaining five packages are still 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. Regarding delays to LTU Package 3, which covers Sections 3B and 3C, he said the appointment of a replacement contractor is in the final stage of the procurement process, with the letter of acceptance targeted for issuance by mid-November 2026, subject to approval from the Ministry of Finance.

Meanwhile, four of the 35 work packages under the 706-kilometre Pan Borneo Sabah Highway project have been completed, while the remaining 31 packages are targeted for completion in stages by 2030. Physical progress has reached 89.54% for Phase 1A and 25.53% for Phase 1B.

For 2027, the Ministry of Works has received an allocation of RM1.146 billion for operating expenditure, an increase of 5.6%, and RM9.736 billion for development expenditure, up 3.0% from RM9.607 billion in 2026.

In our earlier coverage of the launch of the platform Menarabena, we outlined how Malaysia's construction sector is accelerating digitalisation to address cost pressures, compliance with material specifications and completion schedules. The article also explained the role of this B2B platform in matching contractors with suppliers and centralising certification and compliance documentation to improve supply chain efficiency without replacing existing certification requirements.

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