The Land Transport Authority (LTA) in Singapore has signed an agreement with SMRT Trains (SMRT Trains) to implement the government’s New Rail Financing Framework (NRFF).
The North-South and East-West metro lines (NSEWL), the Circle Line (CLL), and the Bukit Panjang LRT (BPLRT) will now come under the new framework.
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Ownership of respective operating assets of SMRT Trains and SMRT Light-Rail such as the trains and signalling system will initially be transferred to LTA. This will allow timely investments in capacity expansion, as well as the replacement and upgrading of operating assets.
SMRT Trains will also be able to better focus on operations and maintenance of the rail network after relieving its ownership.
LTA will later shorten operating licences from 30 to 40 years under the previous financing framework, to 15 years under the NRFF. It will then often re-tender rail line operations. The authority will also impose new maintenance performance standards (MPS).
The new licence under the NRFF will provide for some risk and profit sharing between SMRT Trains and LTA. As per the previous financing framework, rail operators own operating assets such as trains and the signalling system and are responsible for replacing and upgrading.
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By GlobalDataFollowing the agreement, the NSEWL, CCL, and BPLRT will be on the NRFF starting 1 October, with a licence for SMRT Trains to operate until 30 September 2031.
Discussions with SBS Transit on the possibility of transitioning its North East Line and Sengkang-Punggol LRT to the new framework are currently ongoing.
