LPT3 Financing: What Malaysian Drivers Should Know
The East Coast Expressway Phase 3 (LPT3) is currently planned under a public-private partnership (PPP) model, with no hybrid financing approach proposed. The 122 km expressway is expected to connect Terengganu and Kelantan, but the project is still at the request for proposal stage.
Table of Contents
Key takeaways
- LPT3 is proposed as a 122 km expressway connecting Kampung Gemuruh in Terengganu to Tunjong in Kelantan.
- The government says no hybrid financing model has been proposed for LPT3.
- The project is planned under a public-private partnership (PPP) model, with the successful bidder expected to bear the full construction cost.
- Preliminary studies estimated construction costs at RM9.8 billion, but the current cost is expected to exceed RM10 billion.
- LPT3 remains at the request for proposal stage and still requires Cabinet consideration and a decision.
What is LPT3?
LPT3 refers to the East Coast Expressway Phase 3, a proposed highway project intended to further connect the east coast of Peninsular Malaysia.
The proposed 122 km route would run from Kampung Gemuruh in Terengganu to Tunjong in Kelantan. It is planned to complement the existing East Coast Expressway Phase 1 (LPT1) and Phase 2 (LPT2).
For motorists, the project could eventually provide another major road connection between communities and economic centres along the east coast. However, the project has not reached the construction stage.
How will LPT3 be financed?
The government has said that LPT3 will be developed through a public-private partnership (PPP) model rather than a hybrid financing arrangement.
Deputy works minister Datuk Seri Ahmad Maslan said no proposal had been made to use hybrid financing for LPT3. Under the proposed PPP arrangement, the successful bidder would bear the full construction cost.
This differs from the hybrid financing approach being used for the Juru-Sungai Dua traffic-widening project in Penang, where government funding and private institutional financing are combined.
Expert tip: If you regularly travel through the east coast, do not assume that the announcement of LPT3 financing means construction or operations will begin soon. The project is still subject to further government decisions.
How much will LPT3 cost?
Preliminary studies carried out between 2020 and 2022 estimated that LPT3 would cost RM9.8 billion to construct.
However, Ahmad said the current construction cost is expected to exceed RM10 billion because of prevailing economic conditions.
The government is also considering LPT3 alongside other major infrastructure investments serving the east coast. These include the Kota Bharu-Kuala Krai Expressway, which has a reported cost of RM2.3 billion and is fully government-funded, as well as the RM7.7 billion Central Spine Road.
What is the current status of LPT3?
LPT3 remains at the request for proposal (RFP) stage. The proposal is being prepared for submission to the Cabinet for consideration and a decision.
This means motorists should not treat the proposed route, financing arrangement or construction timeline as final until the relevant government approvals and project decisions have been made.
The project’s eventual development will depend on the outcome of the PPP process and the government's decision on the proposal.
Common mistake: Assuming that an announced infrastructure project is already confirmed for construction can lead to confusion about opening dates and routes. LPT3 is still at the RFP stage, so motorists should wait for official updates before making travel plans around the proposed expressway.
Why does LPT3 matter to motorists?
A completed LPT3 could provide an additional expressway connection between Terengganu and Kelantan and complement the existing east coast expressway network.
For drivers, a new major highway could eventually affect route choices, journey planning and traffic patterns. However, the actual impact will only be clearer once the project receives the necessary approvals, construction progresses and the final route and operating arrangements are confirmed.
Until then, motorists should continue relying on existing highways and current traffic information when planning journeys across the east coast.
What should drivers know before the project is completed?
For now, LPT3 should be viewed as a proposed infrastructure project rather than an operating highway.
Drivers planning trips through the east coast should continue checking current traffic conditions and road updates before travelling. Existing routes such as LPT1 and LPT2 remain the relevant expressways for current journeys.
Motorists should also watch for official announcements on the project's route, construction progress, financing and eventual operating arrangements before assuming how LPT3 will affect their regular journeys.
Frequently Asked Questions
1. What is LPT3?
LPT3 is the proposed East Coast Expressway Phase 3, a 122 km expressway planned to connect Kampung Gemuruh in Terengganu with Tunjong in Kelantan.
2. Will LPT3 use hybrid financing?
No hybrid financing approach has been proposed for LPT3, according to the government.
3. How will LPT3 be financed?
LPT3 is proposed to be developed through a public-private partnership (PPP) model, with the successful bidder expected to bear the full construction cost.
4. How much will LPT3 cost?
Preliminary studies estimated the project at RM9.8 billion, while the current construction cost is expected to exceed RM10 billion.
5. Where will LPT3 run?
The proposed 122 km expressway will connect Kampung Gemuruh in Terengganu to Tunjong in Kelantan.
6. Is LPT3 under construction?
No. LPT3 remains at the request for proposal stage and is being prepared for submission to the Cabinet for consideration and a decision.
7. Will LPT3 replace LPT1 or LPT2?
No. LPT3 is planned to complement the existing LPT1 and LPT2 expressways rather than replace them.
8. When will LPT3 be completed?
A confirmed completion date cannot be stated based on the available information because the project is still at the RFP stage.
9. Will LPT3 change how motorists travel between Terengganu and Kelantan?
A completed LPT3 could provide an additional major road connection, but its eventual impact on motorists will depend on the final route, construction and operating arrangements.
10. Should motorists plan trips around LPT3 now?
No. Motorists should continue using existing routes and current traffic information until LPT3 receives the necessary approvals and becomes operational.
Conclusion
LPT3 remains a proposed major east coast infrastructure project, with the government currently planning to use a PPP financing model rather than hybrid financing. The proposed 122 km route could eventually improve connectivity between Terengganu and Kelantan, but motorists will need to wait for further government decisions before the project's construction and completion timeline becomes clearer.
Planning to sell your car? Motorist can help you get a competitive offer while making the selling process simpler.
Read More: Best time to travel to avoid Deepavali traffic 2026
Sell your car with Motorist and get a competitive offer with a simple, convenient process.
Download the Motorist App now. Designed by drivers for drivers, this all-in-one app lets you receive the latest traffic updates, access live traffic cameras, and manage vehicle-related matters.
