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Oral Reply by Senior Minister of State for Transport Dr Amy Khor to Parliamentary Question on the Timeline for the Roll Out of Distance-Based Charging under the Next-Generation ERP System

15 Oct 2020 In Parliament

Mr Gerald Giam Yean Song asked the Minister for Transport 
a.     what is the reason for the delay in the roll out of distance-based charging in the next-generation ERP system (ERP2) despite this being a key feature and cost component; 
b.     what is the timeline for the implementation of distance-based charging; and 
c.     how much of the $556 million ERP2 contract was spent on this feature.
Reply by Senior Minister of State for Transport Dr Amy Khor:
1.     The key reason for switching to the next-generation ERP or “nexgen ERP” is that the current system, which has been in place since 1998, is reaching the end of its operational life.
2.     After studying several options, LTA concluded that the Global Navigation Satellite System (GNSS) was the most suitable technology to use for nexgen ERP. It will remove the need to maintain the current bulky gantries and generate accurate real time traffic data to support transport policy, planning and traffic management.
3.     It can also potentially be used for distance-based charging. There is no specific contract cost attributable to this feature, as it is part of the system design in the contract.
4.     The member asked about the timeline for implementing distance-based charging. I wish to clarify that this distance-based charging is a different approach for congestion charging. The current approach is point-based or cordon pricing – vehicles are charged when they cross a specific point or a cordon. As announced earlier, such distance-based pricing is ‘several years away’. Give the nexgen ERP system some time to settle down first. In the meantime, we will study different approaches and options.