SINGAPORE - The Land Transport Authority (LTA) has called a tender to develop Singapore's next generation electronic road pricing system. The new system will be based on Global Navigation Satellite System technology.

After a 18-month evaluation, the LTA said that it is technologically feasible to use a navigation satellite system for road pricing in Singapore.

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

Another key advantage of the new system is the ability to implement distance-based pricing along the congested roads where road pricing is to be implemented. Distance-based pricing as opposed to the current gantry-based system, is more equitable as motorists will be charged proportionate to the distance travelled on these congested roads, it said.

LTA added that the system will support an interactive and intelligent on-board unit which will provide real-time traffic information tailored to their location, as well as electronic payment for parking fees, doing away with paper coupons.

There may also be a change in policy for off-peak car users, who may be allowed to pay only for using their vehicles for short periods rather than the whole day, or for using them only on uncongested roads.

LTA has shortlisted three consortia to participate in the upcoming tender to develop the next generation road pricing system. They are NCS & MHI Engine System Asia, ST Electronics (Info-Comm Systems), and Watchdata Technologies & Beijing Watchdata System.

The contract to design and develop the system is expected to be awarded in the second half of 2015. LTA added that it aims to implement the system from around 2020.