Prasarana, SMRT accept LOA to form RTS Link JV Co

KUALA LUMPUR: Prasarana Malaysia Bhd and SMRT Corporation Ltd (SMRT) have accepted a Letter of Offer (LOA) jointly issued by Malaysia’s Prime Minister’s Department (PMD) and Singapore’s Land Transport Authority (LTA).

The LOA is for both to form a joint venture company (JV Co) to operate the Johor Bahru-Singapore Rapid Transit System Link (RTS Link).

In a statement yesterday, Prasarana said the JV Co will design, build, finance, operate, maintain and renew the RTS Link in operating assets such as trains, tracks and systems.

“The exchange of letters follows the signing of the RTS Link Bilateral Agreement between the Singapore and Malaysia governments on Jan 16, as well as the earlier signing of a Memorandum of Understanding between Prasarana and SMRT in September 2017,” it said.

It also said the LOA underscores both PMD’s and LTA’s commitment towards granting a concession to the JV Co to be the RTS Link operator, subject to it meeting the stipulated milestones, and terms and conditions for the project.

Meanwhile, the LO A, 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 it.

“Following the exchange of signed letters, both JV partners will work towards executing a joint venture agreement and incorporating a JV Co before June 30, 2018.

“Meanwhile, the concession agreement which sets out the detailed terms of the first concession period of 30 years, is expected to be signed by Sept 30, 2018,” said Prasarana, adding, the RTS Link is expected to commence passenger service by 2024.