S’pore to restart deferred public works projects

Source : Business Times - 14 Jan 2009

The Government will bring back some of the smaller public sector projects of up to $50 million that were deferred earlier and advance other suitable new projects in the pipeline to help the construction industry ride out the current economic crisis.
National Development Minister Mah Bow Tan announced the advancement of public sector projects at a seminar on Wednesday.
He said, ‘the details are being finalised and will be announced during the 2009 Budget Statement.’
Mr Mah said the government has also put in place several credit assistance measures to help construction firms facing credit squeeze and cashflow problems.
He revealed that public sector agencies will be making or frequent, prompt and full progress payments for completed and certified building jobs done.
They will also lower the amount of security deposits for government construction jobs to 2.5 per cent, or even to zero from the current five per cent.
Mr Mah made the speech at the the Building and Construction Authority (BCA) and Real Estate Developers Association of Singapore (Redas)construction and Property Prospects 2009 Seminar at a local hotel.
He said BCA’s projection shows that construction demand has started to moderate.
For 2009, the value of construction contracts awarded will likely reach between $22 billion and $28 billion. For 2010 and 2011, they are expected at between $20 billion and $27 billion.
The building and construction sector had enjoyed an ‘exceptionally strong growth’ in 2008, with a record high $34.6 billion of contracts awarded.