To build a world class transport system, we must make rapid transit the backbone of our public transport system. High demand corridors are best served by rapid transit systems which can carry large numbers of people at high speeds and in greater comfort and reliability.

Last year, I challenged the Land Transport Authority (LTA) to make our rapid transit network as comprehensive in coverage as those in London, Paris and Tokyo. To do this, we have to double the network within 10 years. I am pleased to note that LTA is on track to meeting this challenge.

This is a significant year for public transport development, particularly for rapid transit systems. In April this year, I witnessed the launching of the last beam for Singapore’s first Light Rapid Transit (LRT) system at Bukit Panjang. The event marked the completion of the civil structures of the Bukit Panjang LRT system. Only about 15 per cent of civil work remains to be completed.

Singaporeans also got a glimpse of the first LRT vehicle when it was unveiled on the same day. The fully automatic vehicle is now being fitted out and tested. All works are on schedule and we should see the first LRT go into service by the end of next year.

Last month, I announced that the Government had decided to proceed with the building of the $1.75 billion Marina Line which will link the new Downtown Core at Marina South to the rest of Singapore via the rapid transit network.

Two weeks later, the LTA awarded the architectural and engineering consultancy project for the concept and preliminary design of the Marina Line. When completed in 2004, the Marina Line will provide Singaporeans with convenient and comfortable access to the new downtown business and commercial hub.

Today, we will witness another significant milestone in Singapore’s land transport history. Eighteen months ago, Deputy Prime Minister, Dr Tony Tan, announced that we would be building the 11-km Sengkang LRT to be completed by the end of 2002. This morning, we will be awarding the Sengkang LRT contract.

I am also pleased to announce that the Government has decided to proceed with the third LRT system, which will serve Punggol 21. The Punggol LRT will be 13 km in length and is expected to be completed by the end of 2004.

You will recall that the Prime Minister first announced the plans for Punggol 21 in his 1996 National Day Rally Speech. The Prime Minister had said that Punggol 21 would be the model town for the next millennium and a model for all future town developments.

A month after PM’s speech at the National Day Rally, the Government announced its decision to go ahead with the Sengkang LRT project. In calling for tenders for the Sengkang project, the LTA took the opportunity to invite tenderers to submit an option to build the Punggol LRT system.

Both Sengkang and Punggol are new towns and they present exciting possibilities to integrate town and transport development from the beginning to optimise land use.

By combining the two projects, we can benefit from lower prices due to economies of scale. The Sengkang and Punggol LRT systems will be built at a total cost of $656 million, or about $30 million per kilometre. This is lower than the cost of $35 million per kilometre for Bukit Panjang LRT.

Although the LRTs will only be completed in the new millennium, I can assure all Singaporeans that the wait is well worth while. The Sengkang and Punggol LRTs will cater to a combined daily ridership of more than 150,000.

The Sengkang and Punggol LRTs will be connected to the North East MRT Line at their respective town centres. From there, Sengkang and Punggol residents will be able to transfer smoothly and comfortably to the main MRT system. A trip to the Orchard Road area by LRT and MRT will take just 35 minutes, about the time it would take to travel by car during off peak hours, and even faster than the 45 minutes it would take if travelling by car during peak hours. This is public transport at its best. No hassle of driving and looking for a parking lot and yet having access to many major areas of attraction.

I would like to congratulate STIC JV, the successful contractor for the Sengkang and Punggol LRTs. The Joint Venture comprises Singapore Technologies Industrial Corporation (STIC), Mitsubishi Heavy Industries Ltd (MHI) and Mitsubishi Corporation. The JV will be responsible for the design and construction of the two LRTs.

To the Joint Venture companies, I say welcome aboard. I wish you every success in working with the LTA to make the dream of providing Singapore with a world class land transport system come true.

Thank you.