Singapore may charge extra costs to extend RTS deadline

SINGAPORE: The Singapore transport ministry has given warning that it reserves the right to claim additional costs if Malaysia asks to further extend the suspension of the Johor Bahru-Singapore Rapid Transit System link project.

An agreement to suspend the project from April 1, 2019 until Sept 30, 2019 was signed by the transport ministers of the two countries on May 21.

In a statement today, the ministry said Singapore had agreed to a one-month extension until Oct 31 and waived the additional cost incurred for the one month extension. Should Malaysia request any further extensions, the republic reserved the right to claim for additional costs, it said.

According to the suspension agreement, Malaysia would reimburse Singapore about RM2 million by July 31 as abortive costs incurred as a result of the six-month suspension.

A bilateral agreement to undertake the RTS Link, from Bukit Chagor, Johor, to Woodlands North, Singapore, was signed in January last year by the previous Barisan Nasional government.

The project, for a 4km rail line, was initially scheduled for construction this year and expected to be completed by December 2024, It would have capacity for 100,000 passengers an hour, with the one-way fare set at RM15.

Malaysia would have to pay more than S$66 million (RM200 million) should it choose to terminate the project. - FMT