EVALUATION PROCESS
The tender to appoint the JRL operator was called in May 2023 concurrently with another one for the Cross Island Line (CRL).
LTA said on Thursday it has decided not to award the CRL contract yet.
The exercise was conducted with “the understanding that subject to the assessment of bids, LTA could award licenses for both lines, or for only JRL”, it said.
Singapore’s two current rail operators were invited to bid, while foreign operators could participate through joint ventures with local operators, as minority partners with less than 25 per cent in shareholding.
Tender submissions were evaluated on a “two-envelope process” that considered quality and price factors, with price submissions being opened for assessment only after the quality evaluation was completed, said LTA.
“This process ensures a fair and independent evaluation on the quality of proposals before price is taken into consideration to ensure value-for-money,” it added.
Both tenderers submitted “strong quality proposals” which demonstrated their ability to operate and maintain the JRL while bringing “added value to commuters and enhanced resilience for the rail industry”.
“LTA has decided not to award the CRL contract as we assessed that the tenderers’ proposals have not adequately reflected the uncertainties of operating the line when service commences in six years’ time,” said LTA.
“LTA will select the CRL operator at a later juncture. LTA thanks SMRT Trains and SRJV for their bids for the CRL.”
Phase 1 of the CRL – Singapore’s eighth MRT line – comprises 12 stations, with construction works targeted to be completed by 2030.
The next phase consists of six stations, while engineering studies for the third phase are ongoing
SERVICE FEE ARRANGEMENTS
Due to uncertainties in ridership and fare revenue during the initial years of operation for new lines, the government will bear the fare revenue risk during the first licensing period of the JRL.
This means the awarded operator will be paid a service fee to operate the line while the government retains all fare revenue.
“Similar to the Thomson–East Coast Line, there is a framework to encourage good performance in key areas such as service reliability, customer satisfaction, and operational and maintenance processes,” LTA said.
“This is in addition to licensing and regulatory requirements on service and maintenance performance that the operators have to adhere to.”
The operator will be awarded an incentive payment for outperformance, while a service fee deduction will apply if expectations are not met, LTA added.
