The East Coast Expressway is an interstate controlled-access highway running parallel to the northeastern coast of Peninsular Malaysia. The currently operational segment of the expressway runs between Karak, Pahang and Kuala Nerus, Terengganu. The East Coast Expressway serves as the high-speed alternative to the existing federal routes 2 and 3, which it parallels. Route background The East Coast Expressway begins from the eastern end of the Kuala Lumpur–Karak Expressway at Karak, Pahang, then runs through Lanchang, Mentakab, Temerloh, Chenor, Maran, Sri Jaya, Gambang, Kuantan, Jabur, Chenih, Chukai, Kijal, Kerteh, Paka, Dungun, Bukit Besi, Ajil and Telemong, ending in Kampung Gemuruh near Kuala Nerus in Terengganu. This is the second longest expressway in Peninsular Malaysia, after the North-South Expressway Northern Route. History Early development (1994–2001) The construction of an expressway from Karak to Kuala Terengganu was first announced in 1994 at the time when the Kuala Lumpur–Karak Expressway was being upgraded from the former 2-lane highway to a full expressway. At that time, the original concessionaire company of the expressway project was a consortium company formed by MMC Corporation Berhad (through its subsidiary, Projek Lebuhraya Timur Sdn. Bhd. (Pelita)), MTD Group and Malaysian Resource Corporation Berhad (MRCB). The 338-km expressway was planned as a different route than the Kuala Lumpur–Karak Expressway even though the former would begin at the end point of the latter. At that time, the estimated construction cost of the expressway was RM4.6 billion before being reduced to RM4.26 billion for the entire section from Karak to Kuala Terengganu. Due to the very high cost, MTD Group and MRCB withdrew from the consortium, leaving Pelita to do the job alone. The concession contract between Pelita and the government was signed on 9 September 1998; however, there was no sign of any construction works by the original concessionaire due to the effects of the 1997 Asian financial crisis, hence nullifying the former concession agreement. The first delay of the project became a controversial issue nationwide. The Prime Minister at that time, Tun Dr. Mahathir Mohamad, announced that all expressway projects at that time to be postponed, claiming that Malaysians were not ready to pay tolls to enjoy higher-quality highways. After the state governments of Pahang, Terengganu and Johor pleaded to the federal government not to delay the expressway projects, the federal government agreed to go on with the East Coast Expressway project. Phase 1 (Karak–Jabor, 2001–2004) In order to