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The ground breaking of the North-East MRT Line (NEL) today brings us another step closer to a world class public transport system for Singapore. This must be an especially significant moment for residents in the north-east sector of Singapore, and for some of their Members of Parliament who lobbied long and hard on their behalf, for they are one more step closer to enjoying the comfort and convenience of the MRT.

Two years ago, when the Government was still deciding whether to proceed with the construction of the North-East Line, I was invited by MP’s for the constituencies in the north-east sector on behalf of their residents to discuss their transportation problems. It was clear to me that a reliable high-speed high capacity public transport system was needed. The question was timing and the financial viability of the system.

In Jan 96, the Land Transport Authority (LTA) released the White Paper on Land Transport, proposing among other things, a new financing formula for mass rapid transit systems. Government accepted the recommendations of the White Paper. Based on the new financing formula, the Government decided to proceed with the NEL and bring the line into operation by the year 2002, four years ahead of the original plan.

The NEL, which will cost some $5 bn, is the biggest and most expensive infrastructure project and rapid transit system in Singapore in recent years. In spite of major financial unrest and slower economic growth in the region, we are able to proceed without interruption with this project. This is due to the hard work of our people and the prudence of Government in accumulating substantial reserves over the years. It is a reflection of the people’s support and understanding of Government policies and the Government’s commitment to provide better transport and a higher quality of life for our people.

The NEL is also a reflection of our commitment to invest in our basic infrastructure, in order to enhance the efficiency of our transportation network. In the same way that we are expanding our airport with the building of Terminal 3, the extension of the MRT to Changi, and the expansion of the port to Pasir Panjang, the NEL is a long-term investment to enhance the productivity of our work-force and to enhance our competitiveness. In good times and bad, such investments are necessary.

We have no qualms about proceeding with projects like NEL because of the financial discipline we impose on ourselves when we consider such infrastructure investments. At all times, they have to satisfy strict economic viability requirements, apart from high technical and operational standards.

Sometimes people criticise the Government for being too miserly, for example when we have to explain why certain rail lines or stations which do not make economic sense should not be built. But these prudent policies over the years have paid off. Singaporeans have been spared the brunt of the fury of the financial crisis which has affected the region.

The lesson we have learnt once again is that there is no substitute for hard work, and prudent economic policies in both good times and bad. There is no short cut to success.

As work begins in earnest on this very important project, I would like to assure the public that the LTA will strive to minimise inconvenience to them during the construction period. As the NEL is completely underground, the disruption and pollution during the construction period will be minimised. In the more built up areas, the bored tunnel method has been selected over the cut and cover method to reduce disruption and pollution even further. However, a fair amount of work will still need to be done at the ground level, particularly at the station sites. Some road diversions, noise and dust are inevitable.

I am pleased to note that the Land Transport Authority (LTA) has been working closely with the grassroots and community leaders and briefed them on the forthcoming works. Some time next year, nearer the date of the construction, LTA will also be briefing the people in the neighbourhood who will be affected by the construction.

We appreciate the understanding and support of all the residents affected by the construction. With their help, feedback, and support, LTA should be able to anticipate and resolve problems early, and thus ensure the project’s success.

The LTA will also be working on other rail projects over the next few years to further expand our rail network. They include:

1. The Bukit Panjang LRT, which will be completed in 2 years’ time;
2. The Sengkang LRT which is also in the North East;
3. The Changi Extension Line which will be linked to the Changi Airport; and
4. The MRT station at Singapore Polytechnic, the first station to be retrofitted on an existing line.

When all these projects are completed by year 2002, our rapid transit network would have expanded by more than 50%. Hundreds of thousands more people will have access to the network.

But to achieve a world class land transport system, we cannot stop here. LTA’s plans are to double our rapid transit network within the next 10 years. Its target is to build on average one rapid transit system a year.

To achieve this, LTA has been conducting studies to identify feasible rapid transit projects for implementation in various parts of Singapore, particularly in the residential estates and in the commercial centres. We will subject these proposals to the same rigorous financial and technical scrutiny as we have done all other projects. Once we are sure that they can pass the test, we will proceed.

As long as we continue to work hard and generate wealth, and as long as we are prepared to support policies which are prudent and maintain a healthy surpluses, I am confident that Singaporeans can look forward to a comprehensive, comfortable and convenient rapid transit system, to serve our transport needs into the future.

Finally, let me congratulate the successful tenderers for the various NEL contracts. I welcome them as they join us in this very exciting project of successfully delivering the NEL for the benefit of all Singaporeans. Thank you.

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