KUALA LUMPUR: The main contractor for the Shah Alam LRT (LRT3) project faces liquidated and ascertained damages (LAD) of RM474.9mil as at Dec 31, 2025, says Transport Minister Anthony Loke (pic).
He said the amount was calculated based on a daily LAD rate of RM2,729,280 – or 0.024% of the contract value – imposed on the contractor for each day of delay.
“If calculated from the end of Extension of Time (EOT) on July 10, 2025, the number of days delayed up to Dec 31, 2025 is 174.
“This means the contractor is contractually liable for LAD of RM474,894,729,” he told Dewan Rakyat during Question Time yesterday.
“The main contractor is fully aware of the LAD, and (project owner) Prasarana has received an assurance from the contractor that all outstanding issues will be managed and resolved in the near term,” he said.
Loke was replying to Syahredzan Johan (PH-Bangi), who had asked about the LAD imposed on Setia Utama LRT3 Sdn Bhd (formerly MRCB George Kent Sdn Bhd) for failing to meet the project schedule, and whether the delays were linked to Siemens’ failure to provide satisfactory software on time.
Siemens, in a consortium with Rasma Corporation Sdn Bhd, was appointed for the supply and installation of signalling and train control system along with track intrusion detection system for the fully automated driverless line from Johan Setia, Klang, to Bandar Utama, Petaling Jaya.
He said the delay was not only due to Siemens, but also to several other factors.
These included delays in carrying out critical tests for other system packages such as the communications system and system integration tests, which have now been completed, as well as several rounds of failure during fault-free running (FFR) tests.
Loke said Prasarana’s main focus at the moment is to complete FFR testing for the remaining eight train sets.
