Responding to Member of Parliament (MP) for Nee Soon GRC, Lee Bee Wah’s question in parliament today, asking if the new satellite-based electronic road pricing (ERP) system will result in the pricing of ERPs to be based on road usage during office hours, Transport Minister Khaw Boon Wan confirmed that his Ministry’s current intention is only to price congested roads.
The new ERP which is expected to be ready by 2020 will allow the Transport Ministry to implement the congestion pricing on a distance-travelled basis, which will be “fairer” to motorists, Mr Khaw said.
Mr Khaw, who is also the Coordinating Minister for Infrastructure said, “for example, motorists who travel a full stretch on the congested road can be charged more than those who travel a part of it.”
It is still premature to discuss the implications of the ERP system for different motorists like taxi drivers and delivery drivers, Mr Khaw said. It is also too early to comment if the existing annual road tax or Certificate of Entitlement (COE) system will be adjusted as a result of the new ERP system, the Minister said.
A $556 million contract was awarded to a consortium of NCS and Mitsubishi Heavy Industries Engine System Asia in February 2016. Developments for the new ERP system will begin from the second quarter of 2016.Follow us on Social Media
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