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PR Newswire
20-07-2012, 04:56 PM
One of the on-going discussion of SMRT with LTA recently is the proposal to migrate the existing NSEWL's Licensing and Operating Agreement (LOA) to a similar LOA of DTL.
The detail of the DTL's LOA is not available (for me only?), but one of the key feature is LTA owns both operating and infrastructure assets.
If the proposal approved on NSEWL, what does it mean to SMRT?
SMRT will able to monetize the operating asset. SMRT paid S$1.2 Bils for the asset in 1998, and the remaining book value are
- rolling stock : 556 Mils
- Power supply equipment : 145 Mils
- Properties : 206 Mils (assume 80% as operating asset)
Total approx S$866 Mils will be released base on book value alone. Furthermore future depreciation expense will be greatly reduced
Any other views?
The detail of the DTL's LOA is not available (for me only?), but one of the key feature is LTA owns both operating and infrastructure assets.
If the proposal approved on NSEWL, what does it mean to SMRT?
SMRT will able to monetize the operating asset. SMRT paid S$1.2 Bils for the asset in 1998, and the remaining book value are
- rolling stock : 556 Mils
- Power supply equipment : 145 Mils
- Properties : 206 Mils (assume 80% as operating asset)
Total approx S$866 Mils will be released base on book value alone. Furthermore future depreciation expense will be greatly reduced
Any other views?
“夏则资皮，冬则资纱，旱则资船，水则资车” - 范蠡