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LTA to take over NE Line, Sengkang-Punggol LRT assets worth $30.8M
[SINGAPORE ] Operating assets on the North-East Line and the Sengkang-Punggol LRT line, both run by SBS Transit, will come under the Land Transport Authority (LTA) from April as part of the new rail financing framework.
The value of these assets, which include trains as well as signalling and power systems, are estimated to be about $30.8 million.
The move brings all of the Republic's rail assets under the Government.
The Downtown Line was the first to come under the framework in 2011, when SBS Transit won the bid to operate the line. This was followed in 2016 by SMRT's assets on four lines - the North-South, East-West, Circle, and Bukit Panjang LRT lines - worth an estimated $1.06 billion.
The framework relieves SBS Transit from capital expenditure and revenue risks, and allows it to focus on operating and maintaining the rail network, said LTA.
SBS Transit will pay LTA a licence fee to operate and earn revenue from the two lines, though the authority declined to disclose the amount.
THE STRAITS TIME