North-South Corridor delay: Affected business to continue getting HDB rental rebates if eligible

SINGAPORE: Businesses in Housing and Development Board (HDB) rental shops that are most affected by the North-South Corridor delay will continue to receive rental rebates where there are grounds to do so, said Transport Minister Jeffrey Siow in parliament on Tuesday (Oct 6). 

Several Members of Parliament (MPs) had asked about the impact of the delay, and if additional financial support could be given to affected businesses and residents.

"Several businesses in HDB rental shops most affected by the construction works have been receiving rental rebates on a case-by-case basis. HDB will continue to extend these rebates where there are grounds to do so," said Mr Siow.

"But as a general principle, the government does not compensate stakeholders for project delays."

Doing so would add significant upfront costs to these projects, since the government would have to insure against "multiple unknown scenarios", he added. 

"But that does not mean we are leaving businesses and residents to fend for themselves," he said.

After the Land Transport Authority (LTA) announced in September that the opening of the North-South Corridor will be delayed by two years due to unexpectedly challenging ground conditions, businesses near the North-South Corridor construction sites told CNA they were concerned about survival. 

The project was originally expected to cost S$7.47 billion (US$5.8 billion). Responding to questions about the costs of the delay, Mr Siow said that it would likely result in a higher project cost, reiterating what LTA said in September. 

Since LTA is still assessing the extent of permissible claims by contract, it cannot provide an updated project cost at this point and will do so later, he added. 

TIMELINE FOR SURFACE WORKS

The viaduct section, from Admiralty Road West to Lentor Avenue, is now expected to open in phases from 2029, instead of 2027 as previously announced. The tunnel section from Lentor Avenue to East Coast Parkway is now expected to open in phases from 2031, instead of 2029.

Mr Siow noted that residents’ concerns about noise, dust and disamenities are generally caused by construction works on the surface. 

“I have asked LTA to prioritise the completion of surface works, so that surface conditions start to improve from next year onwards,” he said. 

Most of the major structural works that create the most noise and dust should be completed by the end of 2027, he added. 

After that, LTA will reinstate roads, footpaths and other affected spaces from 2028. For example, the surface for Lentor Avenue and Sembawang Road should be fully restored by mid-2028, said the transport minister. 

“I have also asked LTA to pay particular attention to businesses along the construction route,” he added. 

Changes to pedestrian routes or road access affect customer traffic for neighbourhood businesses, he said, adding that LTA has installed signs and banners to guide customers to affected businesses. 

When surface works are completed, many access routes for pedestrians will be restored as a priority, said Mr Siow. 

LTA will also try to introduce more direct walking routes to shops and food and beverage outlets to make it easier for customers to reach them, he added. 

"We will do everything in our power to ease the friction on the ground. At the same time, I ask for your understanding to give our engineers and workers the time and space required to complete the remaining works safely," he said.

MPs also asked supplementary questions about how the delay was communicated and for location-specific updates. 

With different location-specific timelines, MP Denise Phua (PAP-Jalan Besar) asked if LTA could invest more in communicating specific timelines for when roads would be restored and diversions lifted.

Businesses and residents are affected differently, she added, calling for location-specific support measures. 

While the two-year delay "only became clearer progressively", people who work and live along the corridor need to plan their schedules and businesses, said MP Yip Hon Weng (PAP-Yio Chu Kang). 

"Could the minister explain what considerations led LTA to wait until the overall delay can be quantified before informing stakeholders, rather than alerting them earlier that the existing timeline was at material risk?" he asked. 

LTA announced the delay "as soon as practicable", as engineers first had to ascertain its impact, Mr Siow replied. 

The priority was initially to find solutions and recover time safely, but the risks eventually proved too great, resulting in the delay, he added. 

LTA will try to beef up communications on the ground and ensure that information provided is timely, accurate and relevant, he added. 

Mr Siow also said improved sensors would give authorities a better understanding of underground conditions over time, and hopefully ensure that such variances "do not surprise us as often in the future".

MP Lee Hui Ying (PAP-Nee Soon) asked what indicators the transport ministry would use to assess the effectiveness of existing measures to minimise the impact on residents, particularly in terms of pedestrian safety and noise.

While there were objective indicators such as noise measurements, Mr Siow said "the most relevant indicator" was feedback from residents and businesses on the ground.

LTA will work closely with them and grassroots advisers to gather feedback and make adjustments based on the circumstances at each location, he said.