The Electronic Road Pricing (ERP) scheme is an electronic toll collection scheme adopted in Singapore to manage traffic by road pricing, and as a usage-based taxation mechanism to complement the purchase-based Certificate of Entitlement system. The ERP was implemented by the Land Transport Authority in September 1998  to replace the Singapore Area Licensing Scheme after successfully stress-testing the system with vehicles running at high speed. Singapore was the first city in the world to implement an electronic road toll collection system for purposes of congestion pricing.
The scheme consists of ERP gantries located at all roads linking into Singapore's central business district - areas within the Central Area such as the Downtown Core. They are also located along the expressways and arterial roads with heavy traffic to discourage usage during peak hours. The gantry system is actually a system of sensors on 2 gantries, one in front of the other. Cameras are also attached to the gantries to capture the rear license plate numbers of vehicles. Currently, there are 80 ERP gantries in Singapore. New gantries are implemented where congestion is severe, like expressways and other roads.
A device known as an In-vehicle Unit (IU) is affixed on the lower right corner of the front windscreen within sight of the driver, in which a stored-value card, the CashCard, is inserted for payment of the road usage charges. The second generation IU accepts Contactless NETS CashCard and EZ-Link. The cost of an IU is S$150. It is mandatory for all Singapore-registered vehicles to be fitted with an IU if they wish to use the priced roads.
Mitsubishi Heavy Industries Ltd sold the IU technology to Singapore, and the project was spearheaded by a Consortium comprising Philips Singapore Pte Ltd, Mitsubishi Heavy Industries Ltd, Miyoshi Electronic Corporation and CEI Systems and Engineering (now known as CSE Global Ltd) in 1995 through an open tender.When a vehicle equipped with an IU passes under an ERP gantry, a road usage charge is deducted from the CashCard in the IU. Sensors installed on the gantries communicate with the IU via a dedicated short-range communication system, and the deducted amount is displayed to the driver on an LCD screen of the IU.
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