Press Release: Kuala Lumpur – Singapore High Speed Rail AssetsCo Tender Preparation Progresses Smoothly with Industry Briefing
- MyHSR Corporation Sdn Bhd (‘MyHSR’) of Malaysia and Land Transport Authority of Singapore (‘LTA’) jointly conducted an Industry Briefing on 5 July in Singapore, which was attended by close to 400 participants from 165 international and local entities. The briefing welcomed participants from across the entire High Speed Rail (‘HSR’) value chain, including suppliers and integrators of rolling stock and system, network operators, engineering and legal consultants, financiers and investors, operators and construction companies.
- The objective of the briefing was to inform the participants on the progress of the Kuala Lumpur – Singapore HSR project to date, including indicative tender parameters, procurement processes and the harmonisation of regulatory requirements for the upcoming Assets Company (‘AssetsCo’) tender. The briefing also served as a platform to encourage interested companies to form consortia to participate in the AssetsCo tender.
- The AssetsCo is responsible for designing, building, financing and maintaining all rolling stock, as well as designing, building, financing, operating and maintaining all rail assets (e.g. track-work, power, signalling and telecommunications). The AssetsCo will also develop and implement a Network Code, to coordinate the system’s network capacity for operations and maintenance needs.
- The AssetsCo tender will prioritise safety and security, availability and reliability, proven technology, operations flexibility, customer centric design, value for money, and collaborative project implementation as procurement objectives.
- Following the briefing, further meetings have also been scheduled with the participants to facilitate discussions and obtain feedback on the briefing topics. The feedback received will inform the ongoing design of the procurement plan and tender specifications.
- On the Industry Briefing, LTA Chief Executive Mr Ngien Hoon Ping said: “We are pleased with the strong interest from companies all over the world for the Industry Briefing. We would like to take this opportunity to reaffirm both Governments’ strong commitment to make this project a success. Following the Industry Briefing, we will be calling the AssetsCo tender by the end of this year, and we look forward to receiving quality bids from various consortia.”
- MyHSR Chief Executive Officer Mr Mohd Nur Ismal Mohamed Kamal said: “The Kuala Lumpur – Singapore HSR is a large transport infrastructure project for both countries. As such, it is essential that we explore all opportunities for innovation to ensure that the project is implemented in the most efficient manner. The project will be implemented in phases and this current phase focuses on the AssetsCo tender. Other tenders such as the civil and Operating Company (‘OpCo’) tenders will be developed according to the project timeline and announcements will be made in due course.”
ANNEX A: Highlights from the Industry Briefing
- Governments of Malaysia and Singapore have appointed MyHSR and LTA as Infrastructure Companies (InfraCos) to design, build, finance and maintain the civil infrastructures and operate the HSR stations within their respective territories.
- A new double-track line is to be constructed between Kuala Lumpur and Singapore, designed to accommodate all types of conventional high-speed rail trains and technology available in the market with a design speed of 350 km/h.
- The AssetsCo, a privately-financed Assets Company, is responsible for designing, building, financing and maintaining all rolling stock, as well as designing, building, financing, operating and maintaining all rail assets (e.g. track- work, power, signalling and telecommunications). The AssetsCo will also coordinate the system’s network capacity for operations and maintenance needs.
- The InfraCos shall pay AssetsCo an Availability Payment, which covers the capital expenditure, and the costs of operations, maintenance and renewal of HSR Assets, excluding rolling stock and equipment in the depot and stabling facilities, in return for AssetsCo making the HSR Assets available for OpCos to operate Express, Domestic and Shuttle Services.
- OpCos shall pay AssetsCo Train Lease Fees, which cover AssetsCo’s train- related costs, as well as the operations, maintenance and renewal costs of the equipment in the depot and in the stabling facilities, in return for AssetsCo making the trains available for OpCos to operate Express, Domestic and Shuttle Services.
- The AssetsCo will be jointly procured by both InfraCos, in an open, fair and transparent manner. The AssetsCo tender is targeted to be called by 4Q2017.
- The AssetsCo tender will have the following procurement objectives, in order of priority:
- Safety and Security – a strong commitment to delivering a safe and secure HSR system;
- Availability and Reliability – the ability to deliver a rail system to meet expected levels of availability and reliability;
- Proven Technology – the ability to provide proven solutions that are tailored to meet the HSR Project’s needs;
- Operations Flexibility – is able to provide sufficient operational flexibility to accommodate future operators’ requirements;
- Customer-centric Design – a design that is inclusive and customer- centric, taking into account comfort, inclusivity and accessibility;
- Financially sustainable, value for money – a sustainable and robust PPP that can deliver a value-for-money solution based on whole-of-life considerations; and
- Project Implementation – a project partner that will support MyHSR and LTA in implementing the HSR Project collaboratively.
- The AssetsCo will develop and implement the Network Code, which shall apply to all persons and HSR Entities with a contractual right of access to the HSR Infrastructure and HSR Assets.
The Network Code comprises a set of rules applicable to the operation of the HSR Network which will be incorporated by reference into, and therefore will form part of, the AssetsCo Concession Agreement, each OpCo Concession Agreement and each Train Lease Agreement.
The HSR Code seeks to optimise the usage of HSR Infrastructure and Assets, and provide operational clarity and certainty for all HSR Entities. The Network Code will include details on:
- Network Infrastructure;
- Access conditions c) Capacity allocation; d) Timetables;
- Network charges;
- Compensation provisions; and g) Dispute settlement process.
- Both countries will align and harmonise the regulatory requirements and enforcement measures for safety and security aspects of the HSR.
ANNEX B: Snapshot of the International Entities’ Profiles