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East Coast Expressway LPT3 to constructed with build-operate-transfer financing model: Ahmad Maslan

Construction of the proposed 122 km-long East Coast Expressway Phase 3 (LPT3) will be built using the BOT (build, operate, transfer) financing model, according to Bernama via Malay Mail.

Through the BOT method, the developer company will finance the construction of the LPT3 through the bank, and get a return of profit through collection of toll fare, and once it is completed within a certain period, the project will be returned to the government, said deputy works minister Datuk Seri Ahmad Maslan.

“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,” the deputy works minister told the Dewan Rakyat on Tuesday.

East Coast Expressway LPT3 to constructed with build-operate-transfer financing model: Ahmad Maslan

East Coast Expressway

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,” Ahmad Maslan continued.

Regarding the latest status of LPT3 construction, the project proposal is being examined by the prime minister’s department’s Public Private Cooperation Unit Committee (UKAS), Ahmad Maslan said in reply to Datuk Seri Ahmad Samsuri Mokhtar in the Dewan Rakyat question-and-answer session.

“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,” the deputy works minister said.

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