The East Coast Expressway Phase 2 extends the expressway to Kuala Terengganu, serving as the alternative for both Federal Route 3 and Jerangau–Jabor Highway FT14. The construction of the second phase of the East Coast Expressway E8 began in 2006 as a result of the Barisan Nasional takeover of Terengganu state government from PAS during the 2004 general election. Unlike the first phase of the expressway where MTD Group became the only contractor (and concessionaire company), MTD was only allocated about 30% of the construction job for the second phase, from Bukit Besi to Telemung (Package 10), with the total length of 64 km. The remaining 70% of the construction job was awarded to Bumiputra contractors, where 30% of the construction job was allocated to Terengganuan contractors and the remainder was allocated to non-Terengganuan contractors. As a result, the section built by MTD Group was monitored by the Malaysian Highway Authority (LLM), while the remaining section was monitored by the Malaysian Public Works Department (JKR).