Prasarana, SMRT get nod to form joint venture firm

KUALA LUMPUR: Prasarana Malaysia Bhd and SMRT Corporation Ltd will proceed in forming a joint venture company to operate the Johor BaruSingapore Rapid Transit System (RTS) Link following the acceptance of a letter of offer issued by Malaysia’s Prime Minister’s Department (PMD) and Singapore’s Land Transport Authority (LTA) yesterday.

The letter of offer, jointly signed by Prasarana and SMRT, confirms both partners’ commitment to form a joint venture company to be the RTS Link operator, and their acceptance of the terms and conditions in the letter of offer.

The joint venture company will design, build, finance, operate, maintain and renew the RTS Link operating assets, such as trains, tracks and systems.

The RTS Link is expected to commence service by 2024.

According to a statement, the exchange of letters followed the signing of the RTS Link Bilateral Agreement between Singapore and Malaysia at the 8th Singapore-Malaysia Leaders’ Retreat on Jan 16, as well as the earlier signing of a memorandum of understanding between Prasarana and SMRT in September.

The letter of offer underscores PMD’s and LTA’s commitment towards granting a concession to the joint venture company to be the RTS Link operator, subject to the joint-venture company meeting the stipulated milestones, and terms and conditions for the project.

Following the exchange of signed letters, both partners will work towards executing a joint-Venture agreement and incorporating a joint venture company before June 30.

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.

The RTS Link is a strategic project aimed at enhancing cross-border connectivity between both countries. The link will connect Bukit Chagar Station in Johor Bahru to the RTS Link Woodlands North Station in Singapore.