Downtown Line Stage 2 project schedule to be delayed

SINGAPORE — The construction of Downtown Line Stage 2 (DTL2) — which runs through the Bukit Timah Corridor — will be delayed and additional costs will be incurred by the Government after the main contractor Alpine Bau went bust, Transport Minister Lui Tuck Yew said in Parliament yesterday.

When news emerged that Alpine Bau, which had been contracted to work on the King Albert Park, Sixth Avenue and Tan Kah Kee stations for about S$670.74 million, had filed for insolvency last month, the Land Transport Authority (LTA) had said in response to media queries that it expected work to resume in three to six months. Nevertheless, in response to Aljunied GRC Member of Parliament Sylvia Lim’s question on the implications on the schedule and costs for the construction work of the Downtown Line, Mr Lui told the House that the LTA “will need a few weeks to assess the full impact to the work schedule and cost implications”.

He said: “Unfortunately, given these circumstances, there will be a delay to the DTL2 project timeline, as well as additional costs to be incurred to complete the outstanding works, as new contractors would need to be appointed.”

The construction of Downtown Line Stage 2 started in July 2009 and was scheduled to be completed by 2015. Stretching 16.6km, the line has 12 stations, connecting Bugis Station to Little India, Newton, Botanic Gardens and Bukit Panjang.

Mr Lui said the LTA’s immediate priority following Alpine Bau’s insolvency was to “ensure the safety and security of the worksites and equipment”. Partially completed structures were secured and specialists called in to maintain tunnel-boring machines and recharge wells. “We are also working with the Ministry of Manpower to ensure that Alpine’s workers are properly looked after,” said Mr Lui, adding that the LTA will appoint a caretaker contractor to ensure safety on site and carry out maintenance for the machines before new contractors are appointed.

In response to Ms Lim’s question on whether the Government could claw back some money via contractual provisions, Mr Lui said the Ministry of Transport will file its claims with the insolvency administrator.

“In the meantime, we hold quite a significant sum of money as a result of the performance bond, the retention sum and works that have been completed, but we have not yet been able to make payment to Alpine Bau,” Mr Lui said.

Alpine Bau, Austria’s second-largest construction firm, had said last month that it tried in vain to reach an out-of-court settlement for restructuring of the company after it became plagued with financial woes.

In 2011, work had stopped for over a month at King Albert Park Station after objections from Maplewoods residents that construction space for the tunnel-boring machine was located at their condominium’s exit and entrance points. The matter was resolved after residents met LTA officials and Holland-Bukit Timah Group Representation Constituency Members of Parliament Vivian Balakrishnan and Christopher de Souza.

When TODAY visited businesses along Downtown Line stations, many expressed concern over the delay, given the disruption caused by the construction work, such as road diversions and reduction of parking spaces, and the prospect of having to wait longer before the new stations bring in more customers. Some claimed business had dropped by as much as 40 per cent.

Maplewoods resident and student Potsawee Pradoenkulchai said, however, that he would not mind a slight delay, given the “added convenience” that the new MRT Line would bring.

Mr Lui reiterated that the authorities were aware of the impact on residents and the LTA is looking at “all means available” to minimise the disruption and delay.