Government's Subsidy or Funding of MRT System Maintenance and Upgrades

Mr Gerald Giam Yean Song asked the Minister for Transport in view of SMRT's announcement of its plans to spend $900 million over the next eight years on maintenance and system upgrades (a) whether this amount will be subsidised by the Government and, if so, how much and what are the items that will be funded; and (b) what criteria does the Government use to decide on funding maintenance works for the MRT system.

Mr Lui Tuck Yew: As the rail operator, SMRT is responsible for keeping the working network, which includes both infrastructure and operating assets, in a good working condition. This includes funding the maintenance works for the MRT system.

SMRT had recently announced plans to spend about $900 million on the renewal and upgrade of the ageing north-south and east-west lines. This includes both long-term planned renewal of the system such as the re-signalling project to enhance the system capacity, as well as nearer-term measures to minimise the recurrence of the train disruptions.

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The amount of $900 million is an indicative figure at this point in time as LTA and SMRT are working through the detailed scope of works needed. The amount to be borne by the Government would be guided by the existing rail financing principles and SMRT's obligations under its licence and operating agreement 5 . This amount has not been determined as yet.

I assure the Member that we will work with SMRT to carry out the necessary works expeditiously and in a way that does not compromise safety and reliability of the system.