SINGAPORE - The Land Transport Authority (LTA) said on Thursday (Feb 25) it will roll out Singapore's next-generation Electronic Road Pricing (ERP) system from 2020.

NCS and MHI Engine System have clinched the deal to build the satellite-based system. The partnership's winning bid of $556 million is less than half of the $1.2 billion submitted by the other qualified bidder: ST Electronics.

Here are 10 things to know about the new ERP system:

1. How different is the new system?

It relies on satellite navigation technology instead of physical gantries. It has islandwide coverage, and the ability to charge for distance travelled. It can also facilitate coupon-less street parking and automatic charging for off-peak car usage. It will also push out real-time traffic information to all road users through an intelligent onboard unit.

2. Will I have to pay to have this unit installed?

The first unit and installation will be free.

3. When will it be ready?

From 2020, but for the first 18 months of implementation, distance charging will not be rolled out. Charged areas will also remain unchanged during this time.

4. So when will distance-charging be implemented?

After the transition period. But exact timing has not been determined.

5. Since there will be no more gantries, how will I know when I am approaching a charged road, and the amount I will have to pay?

The new onboard unit will tell you ahead of time.

6. And how will enforcement be done since there are no gantries?

Enforcement cameras will be mounted on lamp posts and overhead bridges. In fact, there may be more cameras employed than today.

7. What are the payment modes?

The onboard unit will still have a slot for Cepas (contactless e-purse application) card. But users can also opt for Giro, or to be billed via their credit or debit cards.

8. If this onboard unit is so powerful, will it be a bigger drain on my vehicle battery?

No. It will draw no more power than the current in-vehicle unit.

9. Will parking coupons be a thing of the past then?

Yes. The onboard unit will tell you the parking charges, and facilitate payment.

10. What about current electronic parking systems?

They will undergo a minor upgrade to be compatible to the new system.