The wheels on the bus: LTA rolls out $7.18b deal with SBS and SMRT for new bus contracting model

The deal is divided into 11 bus packages.

Commuters of the city-state can now anticipate improved bus services, as Singapore’s Land Transport Authority (LTA) has struck a deal with SBS Transit and SMRT buses for 11 bus packages.

According to a release by the LTA, the deal will come into effect by September, and will officially signal the transition to the new bus contracting model.

LTA says when these negotiated contracts expire, they will also be put out for competitive tendering, like the Bulim, Loyang and Seletar packages.

“This gradual, phased approach to competitive tendering minimises risk of service disruption for commuters and allows LTA to refine and improve on the management of contracts, as well as the tendering and handover processes,” the LTA said.

Meanwhile, of the 11 bus packages, SBS Transit will be operating 8 packages of 196 services, while SMRT Buses will operate three packages with 77 services.

“The contracts are of durations ranging from two to 10 years, taking into consideration, amongst others, the completion timeline of supporting infrastructure such as bus depots, and to ensure a gradual schedule of bus packages being put out for tendering,” the LTA said.

“The packages are of varying sizes, and have different compositions of bus services with different route lengths. The estimated total contract fees are $5,322 million for SBS Transit and $1,865 million for SMRT Buses. The contract sums were reached through negotiations with the operators,” the report added.