KUALA LUMPUR, March 5 ― The construction of the proposed 122-kilometre East Coast Expressway Phase 3 (LPT3) from Kampung Gemuroh, Kuala Terengganu to Kampung Tunjong in Kota Baru, Kelantan will use the build-operate-transfer (BOT) financing model.
Deputy Works Minister Datuk Seri Ahmad Maslan said through the BOT method, the developer company will finance the construction of LPT3 through the bank and get a return of profit through the collection of toll payments and when completed within a certain period, the project will be returned to the government.
“We have the ECRL (East Coast Rail Line) project, we have the CSR (Central Spine Road), so the ministry's view of the financing model for this proposed LPT will use the BOT model.
“LPT3 is an inter-city highway, which is usually only used by users on the weekend in contrast to the intra-city highway which is heavily used five days a week, so this funding model needs to be carefully researched to benefit all parties,” he told Dewan Rakyat today.
He said this in response to a supplementary question by Datuk Seri Dr Ahmad Samsuri Mokhtar (PN-Kemaman) during the question and answer session regarding the proposed financing model and operating model for the construction of LPT3 to ensure a return on investment for the parties involved.
Replying to Ahmad Samsuri's original question about the latest status of LPT3 construction, Ahmad Maslan said the project proposal is being examined by the Prime Minister's Department's Public Private Cooperation Unit Committee (UKAS).
“A project team will also be established by UKAS to prepare papers for the Cabinet meeting to obtain approval in principle to implement LPT3 through a RFP (Request for Proposal) tender,” he said.
Meanwhile, replying a supplementary question by Datuk Seri Mohd Shafie Apdal (Warisan-Semporna) regarding the development of the Pan Borneo highway in Sabah, Ahmad Maslan said the RFP process for the next phase connection had been requested by the company which won the project in the previous package.
“Pan Borneo in Sarawak will be completed this year, but we are monitoring Sabah, if this developer company is not performing, we will give a warning, and according to the terms of the contract, we will take action if it turns into a sick project.
“It includes a decisive action of terminating the existing contract and carrying out the process of appointing a new contractor capable of completing the project,” he said. ― Bernama
