Bus financing framework to be refined

SINGAPORE: The bus financing framework will be refined, to help achieve greater level of parity with the rail financing framework.

Transport Minister Lui Tuck Yew said in Parliament that there remains a marked difference between the support given to the bus and rail sectors.

For instance, the government funds the development and land costs for rail depots, and grants rail operators the right to generate and retain non-fare revenue such as advertising revenue in their MRT stations.

Such support is comparatively lacking in the bus sector.

So going forward, consistent with what is done for the rail industry, the government will bear the development and land costs for bus depots and bus parking infrastructure, and lease these to bus operators at a nominal fee.

This will also lower the entry barriers for new operators when contestability in the bus industry is introduced, as bus parking and depots are key infrastructure for running bus services.

Mr Lui said operators will also be allowed to retain a portion of the advertising revenue from bus shelters, which today is retained by the government.

He said this will provide the PTOs some help to cope with rising costs in the future.