The main contractor for the Light Rail Transit Line 3 (LRT3) could be liable for more than RM800 million in delay penalties as Malaysia’s largest light rail project continues to face setbacks in its final commissioning phase, NST reported.
Transport Minister Anthony Loke said the final amount of liquidated and ascertained damages (LAD) against Setia Utama LRT 3 Sdn Bhd will only be confirmed after project completion, with enforcement handled through standard contractual dispute mechanisms.
He said the penalty framework exists to ensure accountability across the delivery chain, adding that Prasarana Malaysia Bhd is responsible for administering the contract.
As at April 27, accumulated delays have reached 291 days, comprising 174 days recorded up to end-2025 and a further 117 days this year. Based on the penalty rate of RM2.73 million per day, total LAD exposure is estimated at about RM790.7 million, with potential to exceed RM800 million if delays persist.
The LRT3 project, which runs 37.8km from Bandar Utama to Johan Setia, was originally targeted for operations on Sept 30, 2025 after reaching over 98% completion. However, it has since been delayed due to issues in system integration and commissioning.
Loke said the main causes of the latest delays involve signalling system readiness and faults identified during fault-free run testing, which was extended from two months to six months. He added that about two-thirds of the issues were linked to signalling systems, with the remainder involving rolling stock.
Physical construction has largely been completed, including stations and infrastructure, with the current phase focused on ensuring full system integration and operational reliability.
He stressed that LAD penalties are intended to protect public interest and that any final determination will be subject to post-completion review and possible dispute resolution processes.
