The Singapore-Johor Bahru Rapid Transit System (RTS) Link has been officially suspended at Malaysia's request.
The project will be suspended until September 30, 2019.
This was announced by the transport ministers from Singapore and Malaysia in a press conference on May 21.
Malaysia requested for suspension
Two months ago, Malaysia requested to suspend the construction of the RTS Link.
However, the original Bilateral Agreement does not have provisions for suspension of the RTS Link project.
According to Singapore's Transport Minister Khaw Boon Wan, Singapore agreed to give the request serious consideration in the "spirit of bilateral cooperation". Hence, both countries have worked out a supplementary agreement to suspend the project.
Khaw added that the suspension will affect several parties, including LTA contractors, bidders, and SMRT which is Singapore's Joint Venture Partner for the RTS Link.
Malaysia to reimburse more than S$600,000
As part of the suspension, Malaysia will reimburse Singapore over S$600,000 in abortive costs.
Abortive costs refer to costs incurred by Singapore which cannot be used for the project if and when it resumes.
An example is the cost and maintenance of the RTS Link work site.
Should Malaysia choose to terminate the RTS Link project, Malaysia will need to pay Singapore more than S$66 million in implementation costs - money that Singapore has already poured into the project since its inception.
No definite date for RTS Link
During the suspension period, Malaysia will be considering if it intends to continue with or propose changes to the project scope. Khaw added that Singapore will give these proposed changes due consideration.
According to Malaysia Transport Minister Anthony Loke, Malaysia is looking at the possibility of working with a private company on the RTS Link project.
Both ministers did not provide a new date of commencement for the RTS Link service as the project scope might be changed during the suspension period.
Once completed, the RTS Link between Singapore and Johor is expected to alleviate the congested Causeway which sees about 300,000 crossings daily.
Top image of RTS Link by LTA.
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