Prasarana, SMRT receive LO to form RTS Link joint venture companyFebruary 9, 2018 @ 6:48PM
By NST Business
KUALA LUMPUR: Prasarana Malaysia Bhd (Prasarana) and SMRT Corporation Ltd (SMRT) will proceed in forming a joint venture company (JVCo) to operate the Johor Baru-Singapore Rapid Transit System Link (RTS Link) following the acceptance of a Letter of Offer (LO) jointly issued by Malaysia’s Prime Minister’s Department (PMD) and Singapore’s Land Transport Authority (LTA) today.
The LO, jointly signed by Prasarana and SMRT, confirms both JV partners’ commitment to form a JVCo to be the RTS Link operator, and their acceptance of the terms and conditions in the Letter of Offer.
The JV Co will design, build, finance, operate, maintain and renew the RTS Link operating assets such as trains, tracks and systems.
The RTS Link is expected to commence passenger service by 2024.
According to a statement, the exchange of letters follows the signing of the RTS Link Bilateral Agreement between Singapore and Malaysia at the 8th Singapore-Malaysia Leaders’ Retreat on 16 January 2018, as well as the earlier signing of a Memorandum of Understanding (MOU) between Prasarana and SMRT in September 2017.
The LO underscores both PMD’s and LTA’s commitment towards granting a concession to the JV Co to be the RTS Link operator, subject to the JVCo meeting the stipulated milestones, and terms and conditions for this project.
Following the exchange of signed letters, both JV partners will work towards executing a Joint Venture Agreement and incorporating a JV Co before 30 June 2018.
The Concession Agreement which sets out the detailed terms of the first concession period of 30 years, is expected to be signed by 30 September 2018.
The RTS Link is a strategic project by both governments aimed to enhance cross-border connectivity between both countries.
The Link will connect Bukit Chagar Station in Johor Bahru to the RTS Link Woodlands North Station in Singapore, and will have the capacity to carry up to 10,000 passengers per hour per direction.
This translates to an additional capacity of 60,000 users crossing the Causeway during peak hours, significantly alleviating congestion.