SINGAPORE: Singapore has agreed to suspend the construction of the Johor Bahru-Singapore Rapid Transit System (RTS) Link until Sep 30 at Malaysia’s request, Singapore Transport Minister Khaw Boon Wan said on Tuesday (May 21).
Under a supplemental agreement signed between both governments on Tuesday, Malaysia will also reimburse Singapore for the abortive costs incurred due to the suspension, Mr Khaw said during a press conference with his Malaysian counterpart, Mr Anthony Loke.
Mr Khaw said that after several rounds of discussions, both sides reached a “mutually acceptable arrangement” on the way forward.
During the suspension period, Malaysia will decide if it intends to proceed with the RTS Link project as it is. Malaysia can also propose changes to the project scope, and Singapore will give any such changes due consideration, he added.
READ: Johor Bahru-Singapore RTS link ‘not progressing well’, Malaysia missed deadlines, says Khaw
“We hope that the RTS Link project will resume at the end of the suspension period – either in its current form as prescribed in the RTS bilateral agreement or incorporating any project scope changes that both sides agree on during the suspension period,” Mr Khaw said.
If not, the project will be deemed to have been terminated by Malaysia, and Malaysia will reimburse Singapore for the costs incurred in fulfilling its RTS Link obligations until now, he said.
The RTS Link, which connects Bukit Chagar in Johor Bahru to Woodlands in Singapore, is expected to ferry up to 10,000 passengers per hour each way.
The project was meant to be completed by 2024, but is now behind schedule with Malaysia repeatedly delaying confirmation of its joint venture partner.
According to a bilateral agreement signed in January last year, a joint venture company comprising Singapore’s SMRT and Malaysia’s Prasarana Malaysia should have been constituted by Jun 30 last year.
The joint venture company should also have been appointed as the RTS Link operator (OpCo) through a Concession Agreement with Singapore’s Land Transport Authority and the government of Malaysia by Sep 30, 2018.
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Both milestones were missed. Malaysia then asked for an extension until Mar 31, to confirm its joint venture partner.
Early last month, Putrajaya said it has requested for a further six-month extension from Singapore before making a decision on the RTS. This will enable the Malaysian government to examine several issues including the cost of implementing the project, said Malaysian Transport Minister Anthony Loke.
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Singapore expressed understanding for Malaysia’s position and both attorneys-general were tasked to work out a supplemental agreement to give effect to the suspension, similar to the process for suspending the Kuala Lumpur-Singapore High-Speed Rail.
“We will approach this issue as we did for the suspension of the High-Speed Rail project, with goodwill and reasonable accommodation,” Mr Khaw said on Apr 8.
