LTA pilots blockchain-based conditional payment solution for construction projects
Published: Feb 2026
Best Payments Solution
Highly Commended Winner
Land Transport Authority of Singapore
Photo of Lim Kian Peng, Land Transport Authority of Singapore.
Ms. Yong Yenn Leng
Chief Financial Officer
Mr. Lim Kian Peng
Group Director of Procurement and Contracts
Established in 1995, the Land Transport Authority (LTA) is Singapore’s statutory board responsible for planning, designing, building and maintaining the country’s land transport infrastructure and systems, including its vast rail and roads/expressway networks.
The challenge
Land Transport Authority (LTA) of Singapore was managing the construction of numerous critical infrastructure projects and faced two major challenges in its payment ecosystem.
Firstly, while mobilisation advancements were provided to main contractors to defray heavy upfront capital outlays, typically as a percentage of the total project value, subsequent disbursements to subcontractors were frequently delayed. These delays were largely due to manual verification processes and paper-based documentation, resulting in payment bottlenecks that risked the financial sustainability of contractors downstream.
Secondly, the lack of transparency in funding utilisation by main contractors posed significant oversight challenges and raised concerns about whether sub-contractors and suppliers on LTA projects were receiving their fair share in a timely manner.
The solution
LTA implemented a blockchain-based conditional payments solution. This solution allows LTA to specify programmable conditions to a payment before it is released. This solution not only enables LTA to disburse mobilisation advance payments efficiently to the contractors, its straight-through processing allows LTA to digitally transform the payout of mobilisation advance payments of construction projects for better governance and greater transparency over utilisation.
LTA funds the account and upload conditions to OCBC’s blockchain platform. OCBC manages the fund and mint ‘tokens’ off the blockchain. Smart contracts are attached to these ‘tokens’.
When payment instructions are received and the smart contracts confirm that conditions are met, the bank unwraps the ‘tokens’ and sends the funds directly to the contractors according to the payment instruction which helps LTA to achieve an overall streamlined payment solution.
The solution’s success demonstrates how financial innovation, powered by technology, can solve complex industry challenges while promoting transparency, efficiency and sustainability in the construction ecosystem.
“Winning this award reaffirms LTA’s commitment in leveraging digital solutions to transform our work processes and realise productivity benefits. It is also a testament to the team’s dedication and innovative spirit in pushing the boundaries and collaboration with our partner, OCBC, to enhance traceability in construction payment process which benefited the construction ecosystem.”
Yong Yenn Leng and Lim Kian Peng, Land Transport Authority of Singapore
Best practice and innovation
OCBC has taken a significant step towards digital transformation by deploying next-generation blockchain-based conditional payments for the LTA. This innovative solution aims to revolutionise the way LTA manages disbursement and utilisation of mobilisation advance payments to contractors involved in various construction projects.
Conditional payments solution (CPS) represents a groundbreaking advancement in financial technology, specifically designed to meet the evolving needs of corporate customers. This smart contract protocol allows businesses to programme specific conditions for fund disbursement, thereby enhancing the efficiency and security of financial transactions.
With CPS, LTA can establish predefined criteria that must be met before funds are released, ensuring payments are made only when specific conditions are satisfied. This capability is particularly valuable in industries such as construction, where timely and conditional payments are crucial for project success.
The implementation of CPS not only streamlines payment processes but also mitigates risks associated with traditional payment methods, such as fraud and disputes. By leveraging blockchain technology, CPS ensures transparency and traceability, allowing all parties involved to monitor the status of transactions in real-time.
Furthermore, this innovative approach fosters trust among stakeholders, as it eliminates ambiguity regarding payment conditions. Overall, CPS is a transformative solution that empowers LTA to manage its financial transactions with greater control and confidence.
Key benefits
Cost savings.
Process efficiencies.
Increased automation.
Risk mitigated.
Improved visibility.
Errors reduced.
Manual intervention reduced.
Future-proof solution.
Exceptional implementation (budget/time).
The Adam Smith Awards Asia are the industry benchmark for best practice and innovation in corporate treasury. To find out more please visit treasurytoday.com/adam-smith-awards-asia
