The Light Rail Transit Line 3 (LRT3) project from Johan Setia, Klang to Bandar Utama is once again in the spotlight when its completion delay caused the main contractor to face a fine of almost RM475 million.
Transport Minister Anthony Loke announced in the Dewan Rakyat that as of December 31, 2025, the total accumulated Liquidated and Ascertained Damages (LAD) was RM474.9 million.
The fine was calculated based on a daily rate of RM2,729,280, equivalent to 0.024% of the contract value for each day of delay.
According to him, after the end of the Extension of Time (EOT) period on July 10, 2025, the project was delayed for 174 days until the end of the year.
This made the contractor contractually liable to pay almost half a billion ringgit to the project owner.
The main contractor, Setia Utama LRT3 Sdn Bhd (formerly MRCB George Kent), was informed that it was fully aware of the liability.
The project owner, Prasarana Malaysia, also received assurances that all outstanding issues would be resolved in the near future.
The delay issue also raised questions about whether it was caused by a software system failure by German technology company Siemens, which was involved in the supply and installation of the signalling and train control systems for the driverless line.
However, according to Loke, the delay was not caused by one party alone.
Other contributing factors included delays in critical tests for the communication and integration systems, as well as several failures during the Fault-Free Running (FFR) test.
The FFR test is important to ensure that the trains can operate without interruption for a certain period before being allowed to carry passengers.
Currently, the main focus is to complete the FFR test for the remaining eight train sets that have yet to pass full assessment.
The success of this test will determine the final date for the official opening of the line, which is eagerly awaited by the residents of the Klang Valley.
