After an 18-month evaluation, the Land Transport Authority (LTA) has concluded that a navigation satellite-based road pricing system will be technologically feasible to implement in Singapore. Hence, the authority has called for a tender to develop the new system.

On Wednesday, LTA said in a statement that this new system will overcome the constraints of physical gantries, which are costly and take up land space. In addition, the current physical gantry system, which is almost 20 years old, will become increasingly expensive and difficult to maintain. 

One key advantage of the new system is the ability to implement distance-based pricing along congested roads. Motorists will also be able to pay parking fees via the new electronic system, thus doing away with paper coupons.

The authority also cited a change in policy for off-peak car users, who may be able to use their cars on uncongested roads or for short periods rather than the whole day.

The contract to develop the new system will be awarded in the second half of 2015, with the aim to implement it from around 2020.