Singapore Land Transport Authority (LTA) and SMRT Trains Ltd (SMRT Trains) have concluded discussions on the transition of the North-South and East-West Lines (NSEWL), the Circle Line (CCL) and the Bukit Panjang LRT (BPLRT) to the New Rail Financing Framework (NRFF). Under the transition, SMRT Trains and SMRT Light Rail will transfer ownership of their respective operating assets, such as the trains and signalling system, to LTA. This will put LTA in the driving seat to make timely investments in capacity expansion and the replacement and upgrading of operating assets.
LTA will shorten operating licences from 30-40 years under the previous financing framework, to 15 years under the NRFF. This allows LTA to re-tender the operation of rail lines more often, making the industry more contestable.
The conclusion of discussions will pave the way for the NSEWL, CCL and BPLRT to be on the NRFF from 1 October 2016, with a licence for SMRT Trains to operate the lines until 30 September 2031. If approved by shareholders, SMRT Trains and SMRT Light Rail will transfer to LTA their respective operating assets for the NSEWL, CCL and BPLRT at Net Book Value as at 30 September 2016.
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