THE Land Transport Authority (LTA) has awarded six contracts worth a total of $1.13 billion for the entire Downtown Line (DTL) project ? even before the operator for the new rail network is appointed.
The early award of the contracts will necessitate the appointment of an operator soon, observers say. The operator's input is critical when ordering equipment because it can avoid operational problems later. One source pointed out that since contracts are awarded based on set specifications, it could already be too late to prevent these potential problems.
But LTA has yet to call a tender to operate the DTL. Some observers wonder if this may mean the authority is considering a third rail operator besides SMRT Corp and SBS Transit.
Currently, SBS Transit runs the North-East MRT Line (NEL) while SMRT operates the bulk of the existing 138km rail network. SMRT will also take on the upcoming Circle Line (CCL) and its extensive experience as a rail operator also extends to numerous consultancy projects overseas.
But an LTA spokesman said it is "normal practice" to order the trains for a new rail network before the appointment of the operator.
"We have done the same for the North-South, East-West and North East lines and we have not encountered any problems so far," said the spokesman.
As to when the operator will be chosen, the spokesman said: "Generally, we would appoint the operator about two to four years before the opening date."
For the six system-wide contracts awarded, the authority said yesterday they will cover all the three DTL stages and include the procurement of trains and other electrical and mechanical component systems. The fully underground DTL will be 40km long and is expected to be ready by 2016. It will have a daily ridership of 500,000 and facilitate direct travel from north-west and eastern Singapore to the Central Business District and Marina Bay.
The DTL's fully automated and driverless trains will be supplied by Bombardier. The Berlin-based group won the $570.7 million contract for the 73 three-car electric trains.
These will not be the first driverless trains in Singapore ? they already service the NEL and will also be used for the CCL.
The second contract, worth $287.5 million, is for the provision of signalling system and platform screen doors by Westinghouse Brake and Signal Holdings. LTA has also awarded two system contracts to ST Electronics. The contracts, for the provision of an integrated supervisory control system and a communications system, are worth $28.7 million and $123.3 million respectively.
Separately, it was announced yesterday that LTA has awarded an $8 million contract to ST Electronics to design, supply and commission the communications system for the Marina Coastal Expressway.
The Otis Elevator Company has won a $22.7 million contract to design, manufacture and install 108 lifts for all 33 DTL stations, while Constructions Industrielles de la Mediterranee will provide 299 heavy-duty escalators for the stations for $100.3 million.
Seven major civil contracts for DTL Stage 1 (DTL1) have been awarded so far. For DTL2, 10 major civil contracts will be awarded from early 2009 onwards, while major civil contracts for DTL3 will be called in 2010.
LTA chief executive Yam Ah Mee said: "With the award of these six DTL contracts, I am pleased that the progress of the project is on time. We are looking forward to the completion of DTL1 in 2013."
This article was first published in The Business Times on Nov 8, 2008.
