Prasarana’s and SMRT’s Acceptance of Letter of Offer
from Malaysia’s Prime Minister’s Department and Singapore’s Land Transport Authority
Prasarana Malaysia Berhad (Prasarana) and SMRT Corporation Ltd (SMRT) have accepted a Letter of Offer jointly issued by Malaysia’s Prime Minister’s Department (PMD) and Singapore’s Land Transport Authority (LTA) for the two companies to form a joint venture company (JV Co) to operate the Johor Bahru-Singapore Rapid Transit System Link (RTS Link). The JV Co will design, build, finance, operate, maintain and renew the RTS Link operating assets such as trains, tracks and systems.
2. The exchange of letters follows the signing of the RTS Link Bilateral Agreement between the Government of the Republic of Singapore and the Government of 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.
Letter of Offer and Letter of Acceptance
3. The Letter of Offer 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 JV Co meeting the stipulated milestones, and terms and conditions for this project. Meanwhile, the Letter of Acceptance, jointly signed by Prasarana and SMRT, confirms both JV partners’ commitment to form a JV Co to be the RTS Link operator, and their acceptance of the terms and conditions in the Letter of Offer.
RTS Link Joint Venture Agreement, Incorporation of JV Co and Concession Agreement
4. 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 expected to commence passenger service by 2024.
About the Johor Bahru-Singapore Rapid Transit System Link (RTS Link)
The Johor Bahru-Singapore RTS Link is a strategic project by the Governments of Malaysia and Singapore to enhance cross-border connectivity between both countries. The RTS Link will connect the 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. Passenger service on the RTS Link is targeted to commence by 2024. On 16 January 2018, both Governments signed a Bilateral Agreement, which captures the key points of agreement on the project, including the technical, safety and security requirements, commercial, financing, procurement and regulatory frameworks, as well as customs, immigration and quarantine arrangements.
Annex: Photo taken at the Exchange of Letter of Offer and Letter of Acceptance
