North-South Corridor delay costs only known after project completion: LTA

The Land Transport Authority will only determine the additional cost from the two-year delay to the North-South Corridor after the project is finished. The S$7.47 billion road project was delayed due to unexpectedly challenging ground conditions, with LTA saying it will assess whether costs will be

SINGAPORE: The additional cost from the two-year delay to the North-South Corridor project will only be known after the project is completed, the Land Transport Authority (LTA) said on Friday (Sep 18). LTA will also determine whether any additional costs will be borne by the contractor or the agency itself, a spokesperson said.

“The final additional cost, including the allocation of costs between the parties, could only be ascertained upon the completion of the project,” said the spokesperson. “As works are still ongoing, LTA is not in a position to comment on project costs at this stage.” The project was originally expected to cost S$7.47 billion.

The comments came a day after LTA announced the delay, citing unexpectedly challenging ground conditions. The news sparked concerns among nearby businesses over their livelihoods, as well as among residents over the daily inconveniences from prolonged construction.

LTA provides tenderers with available ground information to establish a baseline understanding of site conditions as part of the tender process, the spokesperson said. “Tenderers are expected to take into account construction risks that shall be taken as an experienced contractor when pricing their tender. If the ground condition encountered during construction differs from the baseline information provided, the contractor can submit a claim for assessment.” LTA will then “make an assessment and consider additional payment” if the claim is deemed valid under contract provisions.

“LTA’s priority remains to ensure that the NSC is completed expediently without compromising safety,” said the spokesperson. Businesses near the construction sites told CNA that they were seeing falling earnings, footfall and visibility, with some considering shutting down. “LTA recognises that the revised timeline means businesses in affected areas will experience the construction impact for a longer period and appreciates their continued patience and understanding,” said the spokesperson.

The impact from construction is expected to progressively ease from next year as more activities move underground, reducing the extent of works at surface level. Major underground structural works are expected to be completed progressively from 2028, allowing affected areas to be reinstated once they are no longer required for construction, said the spokesperson. “Ahead of the full opening of the NSC, LTA will continue to return affected areas to public use where safe and practicable,” added the spokesperson. “Businesses and residents can expect improvements such as the removal of hoardings and temporary noise barriers, reinstatement of roads and footpaths, and restoration of pedestrian facilities and amenities where feasible.”