Here’s why the new rail financing model could come earlier than expected

It puts SMRT in a better financial position.

After 15 months of dormancy as talks heated up between the LTA and SMRT, new reports are saying the new financing model could come earlier than expected as the transport authority and the rail operator share a common interest of ensuring minimal rail services disruption going forward.

Analysts from OCBC said this scenario puts SMRT in a better position to perform the rail network renewal due to its improved financial ability.

“The recent spate of breakdowns requires SMRT to complete all renewals and upgrade of rail network (i.e. at least two to three years later) before any transition can take place,” OCBC said.

“However, without any concrete confirmation, we prefer to wait and have yet to factor any impact,” OCBC added.

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