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THE Land Transport Authority (LTA) is taking over SBS Transit's contracts for new bus purchases worth S$164 million scheduled for delivery in 2016 and 2017, and will also buy 50 other existing buses from SBS for S$23 million.
"This transition arrangement allows LTA to build its bus fleet expeditiously, without incurring additional cost as the transaction is based on net book value," said the LTA on Tuesday.
In a release to the Singapore Exchange, SBS Transit said that the 50 new buses - 12 single-deckers and 38 double-deckers - were purchased from June to December this year.
Meanwhile, the 346 buses due to come next year and in 2017 consist of 100 single-deck buses and 246 double-deck buses. Some 210 buses are scheduled for delivery in 2016 and the remaining 136 buses in 2017.
"Following this, the company will lease the affected buses from LTA for its operation until such time that these buses are handed over to the operators of the tendered contracts under the government contracting model for bus services," said SBS.
Under the new bus contracting model, the LTA will eventually own all operating assets such as buses, the bus fleet management system and onboard equipment.