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SINGAPORE: Completion compensation to Singapore for the Kuala Lumpur-Singapore high-speed rail (HSR) project will include various abortion costs, but not land acquisition costs, as the value of the land can be recovered.
The republic’s transport minister, Ong Ye Kung, said this today in parliament, in response to one of the questions related to the RSS.
He said that Singapore had spent more than S $ 270 million (RM821 million) on the project.
“Some of these costs, such as consulting services, infrastructure design and labor to execute the project, are abortive costs if the project does not progress,” he said.
Ong was asked what the total amount of expenses incurred to date by Singapore on the project had been and what were the terms specified in the HSR Bilateral Agreement in relation to claims for compensation after termination of the agreement for any of the parts.
On January 1, the Prime Ministers of Malaysia and Singapore issued a joint statement on the expiration of the HSR Bilateral Agreement.
Under the Bilateral Agreement and the previously agreed terms, Malaysia said it will fulfill its obligations under the agreement.
According to Ong, the amount of compensation for the termination and the payment schedule are specified in the agreement.
“In addition, there is a small miscellaneous abortion cost component to the suspension of the Malaysian-requested project that Singapore is currently verifying, before sending it to Malaysia,” he said.
Earlier today, the Minister of the Prime Minister’s Department (Economy), Mustapa Mohamed, stressed that the compensation was not punitive but to reimburse the specific cost of the project that Singapore had already spent.
“We are awaiting the details of the Singapore costs, and once received they will be reviewed before being confirmed. The types of claims allowed have already been agreed, ”he said.
Ong also said that due to confidentiality obligations under the HSR Bilateral Agreement, Singapore was not at liberty to disclose the exact terms in relation to compensation for the termination of the HSR Project.
To date, he said that Singapore has already received around S $ 15 million from Malaysia, as a result of Malaysia’s request to suspend construction of the HSR Project in 2018, until May 2020.
To another question about whether Singapore would consider an HSR-like project with Malaysia, Ong replied, “If we are open to future discussions, of course we are, but it should be zero after we establish the current HSR Bilateral Agreement.” .
On whether the cancellation of the HSR will have any impact on the Johor Bahru-Singapore Rapid Transit System (RTS), Ong replied, “the short answer to the question is no.”
“RTS is progressing well so far. JB’s side has begun. For our part, we will soon begin to build. We hope that the project and service can start in 2026 as scheduled. “
