LRT3 main contractor liable for RM474.8m in late penalties after 174-day delay, says Loke
Transport Minister Anthony Loke said the figure was calculated based on the stipulated daily rate of RM2.7 million imposed on the contractor for each day of delay. — Picture by Yusof Isa
Tuesday, 03 Mar 2026 2:59 PM MYT
KUALA LUMPUR, March 3 — The main contractor for the LRT3 project is liable to pay Liquidated and Ascertained Damages (LAD) amounting to RM474.8 million as of December 31 last year.
Transport Minister Anthony Loke said the figure was calculated based on the stipulated daily LAD rate of RM2.7 million imposed on the contractor for each day of delay.
He explained that, calculated from the expiry of Extension of Time No. 2 on July 10, 2025, the total delay up to December 31, 2025, stood at 174 days.
“The main contractor is fully aware of the LAD, and Prasarana Malaysia Berhad has obtained assurances from the contractor that all outstanding issues will be addressed and resolved in the near term,” he said during question time in the Dewan Rakyat today.
Loke was responding to Syahredzan Johan (PH-Bangi), who asked about the total LAD to be imposed on Setia Utama LRT3 Sdn Bhd as of December 31, 2025, for failing to meet the LRT3 project completion schedule, and whether the delay involved Siemens’ failure to deliver satisfactory software on time.
He said that, in addition to the signalling system supplier Siemens failing to deliver satisfactory software within the stipulated timeline, several other factors also contributed to the project’s delay.
These include delays in carrying out critical testing for other system packages, such as the communications system, as well as the System Integration Test (SIT), which has since been completed.
There were also several failures recorded during the Fault Free Run (FFR) trials.
Loke said Prasarana Malaysia Berhad is currently focused on completing the remaining FFR testing involving eight train sets. — Bernama
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