The Land Transport Authority received approval for the construction of the North East line on 16 January 1996, shortly after the plans were feasible since the Hougang Central Bus Interchange opened on 17 December 1994. French company Alstom was chosen as the main contractor and manager of the project. The operating license was given to new rail operator Singapore Bus Service (present-day SBS Transit) on 20 May 1999 to foster competition with SMRT Trains. Construction began on 25 November 1997 and was completed on 20 January 2001, with new signages (station codes change) installed in all stations.