RTS likely delayed beyond 2024 target, rues Singapore transport minister

The Johor Bahru-Singapore Rapid Transit System Link (RTS Link) Project is likely to be delayed beyond its targeted completion date of Dec 31, 2024, said Singapore Transport Minister Khaw Boon Wan.

In a written reply at the Singapore parliament, he said this is because several project milestones have been missed while Malaysia delayed appointing a joint venture partner for the project several times.

He told the Singapore parliament that Singapore’s SMRT Corporation Ltd and Malaysia’s Prasarana Malaysia Bhd were supposed to have signed an agreement by June 30 last year to form a joint venture company to implement the project, and the new company would subsequently sign concession agreements with transport authorities of both countries by Sept 30, 2018.

These deadlines are based on bilateral agreements signed between Malaysia and Singapore in January last year.

“However, these milestones have been missed. Over the past few months, Malaysia has indicated that they are considering replacing their joint venture partner, but has delayed confirming their joint venture partner – first until September 2018, then until December 2018, and most recently on Dec 28, 2018, Malaysia requested to be given until 28 February 2019 to confirm their joint venture partner.

“As a result of these delays, the joint venture company has not even been incorporated to-date, let alone signed the concession agreement. Meanwhile, Malaysia has also unilaterally suspended bilateral discussions to appoint the RTS Link operator since August 2018, pending its confirmation of the Malaysian joint venture partner,” he said.

The RM4 billion project is a rail link that runs between Bukit Chagar in Johor Bharu and Woodlands, Singapore. It is meant to help relieve congestion at the Causeway linking the two countries.

In announcing the postponement for signing the joint venture agreement, Loke told reporters in June last year that the postponement would last about a month.

This is to allow time to review the project. Loke said the project would proceed, but the Malaysian government is looking for ways to tweak the terms of the agreement and expedite construction work.

Meanwhile, Khaw added that under the bilateral agreement, both Malaysia and Singapore are to jointly call an international open tender if the deadlines have been missed in incorporating the joint venture company or its appointment as a concessionaire, unless both countries agree to postpone those deadlines.

He said Singapore estimates that the open tender needs to be called by March 31 this year, or the appointed concessionaire would not be able to procure the Thomson-East Coast Line for the project before those procurement options expire.

He said that while Singapore understands Malaysia’s circumstances following the 14th general election, missing mutually agreed deadlines and failing to engage with Singapore to jointly call the open tender would have serious implications.

“The bilateral agreement is an international treaty that is binding on the countries that signed it, regardless of any changes in the government.

“The bilateral agreement makes clear each country’s responsibility towards the project, and the consequences of not meeting these responsibilities,” he said. - Mkini