Cost of Developing New Generation ERP System

Mr Zainal Sapari asked the Minister for Transport (a) why is the cost of developing the new generation ERP that is based on the Global Navigation Satellite System estimated to cost $556 million; (b) what are the reasons for the huge difference in the price quoted by the winning tenderer compared to the next highest quote of $1.2 billion; and (c) what will be the Ministry's approach on how data collected will be anonymised and aggregated to protect individual's privacy.

Mr Khaw Boon Wan: The tender awarded for the next generation ERP system includes the cost of designing and building the backend computer system, operating and maintaining the system for the first five years, replacement of On-Board Units (OBUs) for vehicles, and additional equipment like cameras and roadside beacons. It also includes the cost of providing other value-added functions such as capabilities for collection and dissemination of traffic information, and electronic payment for roadside parking, checkpoint tolls and usage of off-peak cars.

Both tender bids received were of good technical quality. The difference in tender prices was due to differences in the tenderers’ cost estimates and pricing strategies.

Safeguarding motorists’ privacy was a key requisite in the tender. The system must be able to anonymise and aggregate ERP data for traffic management and analysis.