Sports Hub delay: Patience, please

Source : Straits Times – 27 Nov 2009

I REFER to Mr Chew Chee Meng’s letter, ‘End the delay and start building’ (Nov 20).

The Singapore Government is fully committed to building the Sports Hub. The Sports Hub is being developed using a Public-Private Partnership (PPP) approach, under which the successful consortium is responsible for designing, financing, building, operating and running programmes in the Sports Hub over 25 years.

The Government will, in turn, make annual payments to the consortium for making the facilities available.

The Government has chosen to adopt a PPP approach as having the same consortium undertake all these functions will help to optimise life-cycle cost and operations efficiency. For example, the consortium will design and build the facilities in a way that enables efficient programming while keeping operating costs as low as possible. The consortium is also incentivised under the PPP arrangement to complete construction as soon as possible, as it will start receiving the Government’s annual payments only when the facilities are built and available.

The project was unfortunately delayed by a steep rise in construction costs worldwide early last year. In addition, under the PPP arrangement, the selected consortium will raise funds from the market to finance the project, but with the global financial crisis from October last year, bank funds became either unavailable or available only at very high costs.

Given the unprecedented scale of the global financial crisis, any consortium selected for the project, be it the Singapore Sports Hub Consortium or any other consortiums, would have faced similar challenges in raising funds. Many PPP projects around the world faced similar difficulties.

Liquidity is gradually returning to the market and banks have started to extend long-term loans again.

The Government therefore agreed for the selected consortium to go out to the market again to raise the loans required. We have chosen to continue with the PPP model, not because the Government is short of funds, but because we believe in the benefits a PPP arrangement can bring.

The Sports Hub will be one of Singapore’s national icons that will be with us for the next 25 years or more. We must build it expeditiously but not at all cost or ending up with a sub-optimal facility.

We seek everyone’s patience as we build a Sports Hub that will be a lasting legacy, and one which we can all be proud of for decades to come.

Alvin Hang
Director
Corporate Communications & Relations
Singapore Sports Council

Sports Hub developer seeks bank financing

Source : Business Times – 14 Nov 2009

It’s expecting to receive loan offers before year-end

SINGAPORE Sports Hub Consortium (SSHC), the winning bidder for the Singapore Sports Hub project, said yesterday that it has kickstarted efforts to raise bank debt finance to build the mega project. ‘SSHC intends to raise bank debt financing and expects to receive financing offers before year-end,’ the consortium said in a statement.

The consortium is made up of construction firm Dragages Singapore, HSBC Infrastructure Fund, United PREMAS and Global Spectrum Asia. SSHC is redeveloping the National Stadium at Kallang into the Singapore Sports Hub under a private-public-partnership scheme with the Singapore Sports Council (SSC). SSHC will design, build and operate the hub for 25 years.

The project has suffered its fair share of delays and hiccups since it was announced. The completion date has been postponed repeatedly. It was first expected to be completed in 2010, but is now likely to come onstream only in 2013 at the earliest.

One reason for the delay is that banks turned cautious during the economic downturn, making it harder for the winning bidder to raise funds. The cost of building the Sports Hub has also increased – from the initial estimates of $650-800 million to $1.2 billion – as construction costs surged and a watersports centre was worked into the plans.

The total price, after factoring in maintenance and operating costs, is expected to be around $1.87 billion – which is what the government will pay the operator for use of the hub over the 25-year period.

The delays have also put a crimp in Singapore’s plans to host the South-east Asia (SEA) Games in 2013, as the hub may not be ready by then. Covering 35 hectares, it will include a National Stadium that can seat 55,000, a 6,000-capacity indoor aquatic centre, a 3,000-capacity multi-purpose indoor arena and an indoor stadium.

Sports Hub still has financing concerns

Source : Straits Times – 14 Nov 2009

THE troubled Sports Hub is still facing difficulties and the expected construction date could possibly be pushed back further to 2014.

It is understood that the preferred bidder for the $1.87 billion project, the Singapore Sports Hub Consortium, has yet to raise the money necessary for construction to begin at the site of the National Stadium.

The inability to secure funds from the private sector has been a problem plaguing the SSHC since last year, partly as a result of the economic recession.

The consortium said yesterday it had recently launched a financing competition, and that it intends to raise bank debt financing.

Led by construction firm Dragages Singapore, the SSHC expects to receive offers before the end of this year.

‘It’s essentially trying to get loans on the best terms,’ said a source.

A spokesman declined to reveal how much needed to be raised, although it is believed to be at least $1.2 billion, the hub’s estimated construction cost.

The source added: ‘It now all depends on whether we can raise the necessary funds. When that happens, then we can proceed.’

Dragages managing director and SSHC head Ludwig Reichhold said yesterday he was targeting to sign the final contract with the Singapore Sports Council by early next year. In August, he had set the end of this year as a target.

The SSHC had hoped to pull down the National Stadium by the first quarter of next year, but this is dependent on the final contract being signed first.

Demolition will take about three months. Construction can then begin and will take about three years.

Since the project was announced in 2005, its completion date has been pushed back repeatedly from 2010, to 2011, 2012 and then 2013.

Singapore’s hosting of the South-east Asia Games in 2013 is now uncertain.

The hub is a public-private partnership (PPP) project. This means the Government will pay the SSHC – which will design, build, and operate the facility – a monthly unitary payment throughout the project’s 25-year term once the final contract is inked.

Let’s get real on the Sports Hub

Source : Business Times – 29 Sep 2009

THE clock is ticking as Singapore awaits the outcome of discussions between the government and the consortium tasked with building the country’s $1.87 billion Sports Hub.

The mega-project in Kallang – originally scheduled to be ready by end-2010 but which will now be completed only in mid-2013 at the earliest – has been delayed time and again, chiefly due to financial and legal issues.

It’s time for the authorities and other relevant parties to come clean and make clear their plans for the hub going forward, because whatever they say will have a bearing on the Republic’s ambitions to be a major player in the international sporting arena.

The Singapore Sports Hub Consortium must set itself a deadline to decide on what to do next. Pick a date (the sooner the better), work within that timeframe and come up with a firm working plan on how the hub should progress, after factoring in all the various stumbling blocks.

In the event that securing bank loans is still a problem next year – a distinct possibility, given the scale and budget of the Sports Hub – then a Plan B must be activated.

Perhaps the hub could be scaled down for now so that at least some of the facilities are built first, with the rest to follow at a later date. Is it possible to build the national stadium and aquatic centre first, for instance, and then construct the other facilities some time after that?

As things stand, the government is sticking by its earlier statement that it remains in active discussion with the consortium to help resolve the funding issues. The agreement now is for the consortium to provide the necessary funds to build the infrastructure and carry out the programming. The government would, in turn, pay the consortium for labour and operational costs over a 25-year period.

But no matter which way you look at it, it is already uncharacteristic by Singapore’s standards for a national project to be delayed nearly three years – and possibly even longer, given that the consortium has yet to sign the final contract with the Singapore Sports Council. It is set to do so by year-end.

A project of this scale is by no means easy to plan and execute. Like all other sports fans, I am eagerly awaiting the day when we finally have a world-class Sports Hub that we can call our own and be proud of. Under the circumstances, the least we can expect is some clear direction on the next course of action, as well as the various options available.

The ball is now firmly in the court of the government and the consortium to provide the many answers that the sporting public craves.

In a tangle over public-private tie-ups

Source : Business Times – 20 Sep 2009

Sports Hub limbo has some wondering if such partnerships work

The $1.87 billion Sports Hub, to be built on the site of the current National Stadium at Kallang, has not exactly been the poster boy for public-private partnership (PPP) projects.

More than two years after an elaborate, pomp-filled closing ceremony involving a friendly football international between Singapore and Australia – billed as the Grand Old Dame’s last match – the National Stadium remains standing and continues to host events.

For a gamut of reasons, most recently delays in finalising funding from financial institutions, the Sports Hub’s completion date has been pushed back repeatedly from 2010 to 2011, 2012 and now 2013.

This has left many wondering whether it should have been built the same way other major infrastructure projects are – with funding from the Government.

A PPP is a long-term (usually 15 to 30 years) collaboration between the public and private sectors to deliver infrastructure and services.

The private sector – usually a consortium comprising firms from a range of industries – designs, builds, finances and operates the facility.

In the case of the Sports Hub, the winning bidder Singapore Sports Hub Consortium will then ‘rent’ the facility back to the public sector, and receive an annual sum over the project’s 25-year lifespan.

Revenue from events through ticket sales will be shared with the Government.

According to PPP expert Satyanarayan Ramamurthy, an executive director at KPMG Corporate Finance, a key benefit of the model is the optimal allocation of risk.

He said: ‘Allocating appropriate risks to the private sector, which has the expertise to better manage them, can reduce the overall project costs for the Government.’

The public sector – and correspondingly taxpayers – will be insulated if the Sports Hub’s $1.2 billion construction cost rises because prices of raw materials or labour costs go up. If the Government was behind the project, it would also not enjoy any budget certainty.

Take what is happening to the organisers of the 2012 Olympic Games. When London submitted its Olympics bid in 2005, it estimated the 80,000-capacity Olympic Stadium would cost £280 million (S$644 million). A year later, that figure ballooned 77 per cent to £496 million.

The British government also more than doubled the budget for building the Games venues to £9.3 billion that same year, sparking fears of spiralling costs.

The main challenge surrounding PPPs is the complexity of assessing risks that may arise five, 10 and 20 years down the road.

Mr Ramamurthy said: ‘It is difficult for a contractual arrangement to accommodate variables over a span of 20 to 30 years.’

In the case of the Sports Hub, no one could have foreseen the world economy being hit by arguably the worst recession in decades so soon after the Government announced the project in 2005.

Whereas the Government would have tapped its massive war chest to fund the project, thus ensuring continuity, the private sector does not enjoy the same privileges.

There have been successful PPP projects concluded here in the past, however.

The first was in 2003, after a $200 million contract was awarded to SingSpring to design, build, finance and operate a desalination plant in Tuas to supply water to the Public Utilities Board for 20 years.

Other PPP projects include an Ulu Pandan Newater plant and an incineration plant at Tuas.

Getting the private sector to stay involved in the project, from the planning process all the way through to long after the venue is finished, also ensures that corners are not cut at any point.

Said specialist PPP company Plenary Group’s chief executive Keith Martin: ‘Builders will be incentivised to get the most cost-effective materials that can last long-term, instead of going for the cheapest material that may last for just a few years.’

A PPP also ensures the venues do not become soulless, pointed out SingaporeSailing and Singapore Rugby Union president Low Teo Ping.

The former veteran private banker, who has worked at both UBS and Citigroup, said: ‘Rather than not having any obligations once the facility is completed, it is in the consortium’s interests to think long- term and ensure a sustainable line-up of programmes for continuous profits.’ For instance, the Stade de France is still making money more than a decade after hosting football’s showpiece event.

Statistics show that the number of PPPs around Asia is increasing.

A recent survey of 14 Asian countries found that PPP opportunities will peak in mature economies like Singapore and South Korea between next year and 2015.

Developing Asian countries are expected to provide increasing PPP opportunities from 2016 to 2025.

Mr Ramamurthy noted: ‘There still remains a strong continued interest in governments for using the PPP model…as it often delivers value for money.

Sports hub delayed but will be built

Source : Straits Times - 27 Apr 2009

THE sports hub project in Kallang may be facing setbacks, but Singapore will eventually have a new national stadium.

Community Development, Youth and Sports Minister Vivian Balakrishnan gave his assurance on this yesterday, saying the proposed $1.87 billion sports complex would not be abandoned.

He was responding to a question at a dialogue during a ministerial walkabout. A resident had expressed concern about the numerous delays in the project.

A group named the Singapore Sports Hub Consortium won the bid to build the Sports Hub in January last year, but there has been little sign of progress.

The old National Stadium was due to be torn down in April last year but it is still standing. Last week, the consortium said the economic crisis was causing difficulties in financing the project, sparking more speculation over its health.

Yesterday, the minister stated categorically that work on the sports hub would go ahead.

‘I will give you that assurance, we will be building a new sports hub. The timing is a bit flexible because, right now, the consortium whom we have intended to award it to, they have to raise funds from the banks and you know because of the financial crisis, the banks are also checking two, three, four times before they lend money,’ he explained.

But he emphasised that the Government would not rush the project.

‘In picking the time and the way we approach this project, we can actually build it without wasting money,’ he said.

There is no hurry because a national stadium is not required for next year’s Youth Olympic Games (YOG).

He also gave an update on the YOG preparations, saying work on the physical infrastructure was ‘on track and on time’.

But equally important was to make sure Singaporeans understood that the event belonged to them, he added.

‘You must feel that this is your event, this is Singapore inviting the world.

‘We want to show the world that Singapore is a multi-racial, multi-religious, young country, which exemplifies Olympic values.’

Sports Hub project hit by lack of money

Source : Straits Times - 24 Apr 2009

A LACK of financing has put the brakes on the $1.87 billion Singapore Sports Hub project at Kallang.

Construction cannot go ahead because of this, Mr Ludwig Reichhold, managing director of construction firm Dragages Singapore, the lead agency of the Singapore Sports Hub Consortium (SSHC), told The Straits Times yesterday.

He said: ‘The project is more or less ready to start because the design has been developed to a stage where we have a provisional permit to start.’

However, he added, ‘obviously, we have found difficulty in financing because of the financial crisis, and we’re trying to resolve this with the Government.’

He was confident, however, that this would be a short-term hiccup, saying: ‘This situation with the financial market is a temporary one, and we’re trying to overcome that. Once that is resolved, we will be ready to start.’

When contacted, asset management firm United Premas, another member of the consortium, echoed Mr Reichhold’s comments on the difficulty of securing financing.

Other members of the consortium, meanwhile, are keen to get started.

Asked about the progress in planning, co-lead designer of the project, DP Architects’ Mr Teoh Hai Pin said: ‘As far as I’m concerned, the design side is very advanced. We’re ready.’

The Sports Hub, an integrated complex featuring a 55,000-seater stadium, watersports centre and leisure, shopping and dining facilities, is due to be completed by end-2011, in time for Singapore to host the 2013 South-east Asia Games.

SSHC won the bid to build the Sports Hub in January last year, but little work has been done so far. The contract agreement was to have been signed in March last year, followed by the tearing down of the National Stadium the following month. The contract remains unsigned, and the Grand Old Dame still stands.

The lack of progress has raised speculation about SSHC’s ability to deliver on its plans for the 35ha hub.

The latest came on Wednesday when the London-based, subscription-only online publication Infrastructure Journal said the Singapore Government was ready to step in and bail out the struggling project.

The Journal, which claims a global readership that includes investors and government officials, also said that banking giant HSBC, the consortium’s financial adviser, is looking for 10 to 12 banks to provide financing. The report said no bank was prepared to put up more than $200 million for the project.

When contacted, both the Ministry of Finance and HSBC declined to comment on the report. Said HSBC’s resource and energy group director Lynn Tho: ‘We are working closely with the Government and are still in discussions.’

The Sports Hub is a public-private partnership (PPP) project. The Government will pay the SSHC - which will design, build, finance and operate the Hub - a monthly unitary payment throughout the project’s 25-year term. In return, the Government will receive a cut of third-party revenues.

No takers for old pools

Source : Straits Times - 18 Apr 2009

TIME is running out for four of Singapore’s oldest public swimming pools, unless private sports-related investors step in to give them a new lease of life.

If there are no takers, the four pools at Bukit Merah, Yan Kit, Pandan Gardens and Jurong Town will be returned to the Singapore Land Authority (SLA) for redevelopment.

The four had been under-utilised and have been closed for more than five years now. Yan Kit, one of the oldest pools, was opened in 1952.

But the high costs of converting the pools into facilities for other sports - which can range from $900,000 to $4 million - is likely to curtail interest from both the private sector and national sports associations.

The Singapore Sports Council (SSC), which manages the pools, is holding a final public tender exercise for them by the end of this month. It has been trying to lease the sites out without success.

Previous tender exercises had attracted bids to convert the pools into prawn- and crab-fishing grounds, but these were rejected as they did not fulfil the SSC’s criteria of sports and recreation usage.

A fifth public pool at River Valley, also closed owing to under-utilisation, is not up for tender because it is being considered under the Government masterplan for Fort Canning Park.

Many of the disused pools sit on prime land, and there were calls by the public for them to be redeveloped, partly because they were potential breeding grounds for mosquitos.

In 2005, the Singapore Ice Skating Association (Sisa) had expressed interest in one of the facilities. But its plans to turn the Bukit Merah pool into an ice-skating rink fell through when its partner from the private sector pulled out at the last minute.

Refurbishing the entire complex for ice skating would have cost a staggering $4million.

Said Sisa president Sonja Chong: ‘We looked at doing it up ourselves but, as a small sports association, we just didn’t have the means.’

The Singapore Ice Hockey Association (Siha) also considered converting a swimming pool into an ice-skating rink. But, again, the high costs were a deterrent.

‘We looked seriously at Bukit Merah, but we felt that the initial investment would be too high,’ said Siha president James Kodrowski.

He added that the location was also less than ideal, saying it was sited in an ageing neighbourhood with limited public transport options.

But not everyone has said no to former public swimming pools. Three other pools which were closed - Boon Lay, Farrer Park and Paya Lebar - have been leased out to sports organisations.

The pool at Boon Lay, for instance, has been covered over and turned into a hockey pitch. Hockey One, the company that runs the facility, spent nearly $900,000 to do that when it took over in 2006.

It now rents the pitch out to schools and individuals, for both hockey and futsal.

According to Hockey One proprietor Veer Singh, business is ‘not too bad’ and it has just renewed the lease for another three years.

In the case of Paya Lebar, it was used by the Triathlon Association of Singapore (TAS) between 2003 and 2007.

When the lease expired and the site was returned to the SLA, the TAS moved to its present home at the Delta Sports Complex.

But Farrer Park is still a hotbed of sports activity. The pool is run by the APS Swim School, founded by national swimming head coach Ang Peng Siong.

Ang, who has since left the school to concentrate on his national duties, spent between $60,000 and $80,000 to clean up and renovate the facility when he took over in 2004.

The school spends about $15,000 a month in rental and maintenance fees.

Said Ang: ‘It’s expensive, but Farrer Park has a lot of sporting history. By having the school here, we can salvage a little bit of that.’

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Unwanted pools

~ Yan Kit: Singapore’s second-oldest public swimming pool was opened in 1952, and shut its doors in 2001.
~ Bukit Merah: Closed in 2003. The ice skating and ice hockey associations were interested in converting the pool into an ice-skating rink, but changed their minds owing to the high costs.
~ Pandan Gardens: Closed in 2003.
~ Jurong Town: Closed in 2003.

Now open for bidding

Source : Straits Times - 31 Mar 2009

THE race to build the Changi Motorsports Hub (CMH) has officially flagged off, and at least three contenders are jostling for the chequered flag.

After more than six months of delays owing to market research on the Hub’s potential, the Request For Proposal to build and manage CMH was released by the Singapore Sports Council at 3pm yesterday.

Within the first hour, two bidders - leisure-oriented SUTL Group and car-and-leisure group Singapore Agro Agricultural (SAA) - made their $10,000 deposits and collected the documents at the SSC office along Mountbatten Road.

The third bidder is a consortium of local and international firms - according to Knight Frank’s deputy managing director Danny Yeo, whose real estate consultancy firm is part of the consortium.

‘We’re very confident about our bid,’ said the SAA man who collected the documents. He refused to divulge more.

Optimism will be much needed to meet the SSC’s challenging specifications, which were developed with the help of specialist consultants Confluence and race-track adviser VDM Group.

The CMH will sit on a 41-hectare plot, the equivalent of about 58 football fields, next to the Changi Airshow grounds.

The size is more than double the initial 20ha plot set aside by the Government, thanks to added space from the Airshow’s carpark. There will be a permanent track of at least 3.5km long and a sheltered grandstand for at least 8,000 spectators.

The track, expected to be completed by 2011, will be certified Grade 2 by the International Automobile Federation and Grade 1 by the International Motorcycling Federation - so expect races like MotoGP, Super GT and A1 Grand Prix.

Apart from hosting international motorsports events, SSC chairman Alex Chan said the Hub also had to be a centre of excellence for motorsports training and education, and be financially and commercially sustainable.

‘We plan to have a circuit that runs 24/7, whether or not there’s motorsport activities,’ said SSC’s deputy director (motorsports) Fan Chian Jen.

This means bidders must also consider including entertainment, retail, convention and hospitality facilities, along with a racing academy and motorsports-related services.

Chan estimated the Hub, which will be entirely privately-funded, will cost ’several hundred million dollars’.

Among the returns: uniqueness.

VDM’s principal Enzo Biagioni-Froudist said: ‘The site being compact is actually quite an advantage, as it offers the opportunity for spectators to see the majority of the race, majority of the time.’

Proposal submissions will close on Aug 27. A panel comprising various government agencies will select and announce the successful bidder by the first quarter of next year.

An industry source said that Peter Kwee’s Group Exklusiv and Haw Par Corp are two other potential bidders.

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Changi Motosports Hub

Where: Next to the Changi Airshow site

What: 41 hectares of sea-front land with capacity for a racetrack of at least 3.5km (International Automobile Federation Grade 2 certified) and a sheltered grandstand for at least 8,000 spectators

Which: Races expected include MotoGP, Super GT, World Touring Car Championship, A1 Grand Prix

When: Submission of proposals closes on Aug 27. Announcement of successful bidder, first quarter of 2010. Hub expected to be ready by end 2011.

Other potential facilities: Clubhouse, convention halls, entertainment complex, food and beverage facilities, general retail outlets, motorsports-related services and retail outlets, non-racing garaging facilities, racing academy, research and development facilities, showrooms, warehousing facilities with secure storage capabilities.

Interest revving up for Changi race track

March 31, 2009

International and local companies have shown ’substantial’ interest in the new Changi race track, the Singapore Sports Council (SSC) said yesterday when unveiling the Request For Proposal (RFP) to build and manage the project.

The plan is for a permanent circuit on 41 hectares of land at the eastern tip of Singapore. Also on the site - next to Changi Exhibition Centre - will be an entertainment complex, F&B facilities, retail outlets and convention halls.

The track will be at least 3.5km long and Grade 2 certified by the Federation Internationale de l’Automobile, which means all car races except Formula One can be held.

It will be Grade 1 certified by the Federation Internationale de Motocyclisme, which means motorcycle grand prix races can be held.

The government announced plans in October 2007 to work with the private sector to build a permanent track at Changi.

‘The RFP has been long anticipated,’ SSC chairman Alex Chan said yesterday. ‘We spent a considerable amount of time reviewing financial models, plans and the site to make it attractive and sustainable for potential bidders.’

The original plan was for a 20ha site. SSC said the additional land will be parking space shared with Changi Exhibition Centre.

‘When the project comes to fruition they will be two good neighbours,’ Mr Chan said.

There is ‘demand’ for the project and now is a ‘good time to launch it’ given it will take 18-24 months to complete, by which time the economy is expected to recover, he said.

The RFP is available with a $10,000 deposit. Proposals must be submitted by Aug 27.

The successful bidder will be announced in the first quarter of 2010. Project completion is scheduled for Q4 2011 and the track opening by Q1 2012.

‘Interest has remained strong,’ said Mr Chan, who expects several consortiums to bid for the project. It will cost ’several hundred million dollars, so it cannot be managed by just one company’, he said.

Bidders will be evaluated 40 per cent on their ability to make the project a top venue for international motorsports.

They will be evaluated 20 per cent each on developing a centre of excellence for motorsports training and education, and financial and business sustainability.

The other criteria are contribution towards developing a local motorsports ecosystem and attractiveness of commercial mix and events.

The winning bidder will get to build and operate the project for 30 years.

SSC deputy director Fan Chian Jen summed it up: ‘We are looking for the top proposal for the integration of hardware and software.’

Sports Council calls for tenders to build permanent racing track

Source : Channel NewsAsia - 30 Mar 2009

By end-2011, Singaporeans will enjoy motor racing in the country’s first permanent track. The Singapore Sports Council (SSC) has called for tenders or a Request For Proposal for the Changi Motorsports Hub.

The 3.5-kilometre-long track will sit on a 41-hectare site, which is about the size of 58 football fields. It will face the sea, near Singapore’s Changi Airport on the eastern end of the island.

The Grade 2 track, with an 8,000 capacity grandstand, can be used for all races from A1 to MotoGP, except Formula One.

The government was supposed to call for tenders last year after the location was confirmed in October 2007. However, the SSC delayed it to better meet the requirements of potential bidders, such as doubling the land size from the original 20 hectares.

The government said there are interested parties, despite the current economic downturn and the estimated cost of several hundred million dollars.

Alex Chan, chairman of SSC, said: “In this case, it is a wholly private sector project and from our assessment, talking to various parties who have shown interest, they like this thing to go on.”

This is partly due to the hub’s unique features, which will have entertainment, retail, education, training and even R&D under one roof.

Fan Chian Jen, deputy director, Motorsports Industry Development, SSC, said: “(We want) to have a circuit that runs 24/7, whether or not there are motorsports activities, so that people go there, wine and dine and experience motorsports in other ways.”

Another plus is that the hub will be located close to the city and airport, making it a viable tourist destination.

The Singapore Sports Council is hoping that the successful bidder would target transit passengers at the Changi Airport. These travellers could come for a quick spin around the track and be awarded a certificate for their best times as a memento before they catch their next flight.

The track’s compact size is also a bonus for fans. Enzo Biagioni-Froudist, track consultant, Changi Motorsports Hub, said: “In some of the larger events, we really see only snippets of the action. This facility offers other opportunities, which allow much greater visual access to the racing.”

Tenders for the 30-year lease must be submitted by August this year, with the winning bid to be announced in the first quarter of 2010. Tender documents are available at the Singapore Sports Council.

National Stadium back in business

Source : Sunday Times - 8 Feb 2009

The National Stadium is now game to do extra business.

It was slated to be demolished to make way for the Sports Hub but plans have now run into problems.

Since it has been given a further lease of life, its management, the Singapore Sports Council (SSC), is now changing tack.

It is opening the stadium to all event organisers, and not just those whose events are deemed to be of national interest.

Back in November, the SSC’s sports facilities chief, Mr Kenneth Hui, had said that requests would be assessed on a case-by-case basis.

A request, for example, to hold the Asean Football Federation Suzuki Cup semi-finals and finals was given the green light. The reason? Football matches had the potential of filling up the 60,000 capacity place, and the Lions are the pride of the nation.

Last Tuesday, it was announced in Parliament that the building of the $1.87 billion Sports Hub has been delayed due to funding woes. The Government is in ‘active discussions’ with the Singapore Sports Hub Consortium to address this.

Construction of the 35ha Kallang Sports Hub was originally scheduled to start in 2007.

Regarding those who are keen to use the stadium, Mr Hui said: ‘Event organisers will need to assess the condition of the stadium and ensure it meets their standards and requirements before hosting any events.’

Any improvements deemed necessary will have to be borne by the organisers.

The rental on weekends is $12,600 per day. It is $8,925 on a weekday.

Over the last few months, the SSC has received inquiries to hold events linked to sports, concerts and religion. The organisers are in negotiations with SSC but nothing has been confirmed.

But the SSC has no plans to lease the stadium premises to businesses. Singapore Pools, for example, was once a tenant.

For those who wonder if the stadium could host the National Day Parade (NDP) - which it has done on many occasions - a spokesman for the NDP 2009 executive committee said plans to stage the event at the Marina Bay Floating Platform were confirmed six months ago.

The last two NDPs were held there too.

But the spokesman did not rule out a possibility that the NDP might be held at the stadium again before it gets torn down.

Sports Hub has problems raising funds

Source : Straits Times - 4 Feb 2009

THE Singapore Sports Hub Consortium (SSHC) is having difficulty securing the funds necessary to start the project in Kallang in the light of the current credit crunch, Parliament heard yesterday.

The Government is now in ‘active discussions’ with the consortium to address this, and the options available to move Singapore’s biggest sports project forward, said Mrs Yu-Foo Yee Shoon, Minister of State (Community Development, Youth and Sports).

‘Discussions are still ongoing. When ready, we’ll make an announcement on how we intend to proceed with the project,’ she said of the 35ha Kallang Sports Hub, which has already faced several delays.

She was responding to questions from Madam Ho Geok Choo (West Coast GRC) on whether the Government will prevent further delays to the project and make credit more readily available to the consortium.

The SSHC - led by construction firm Dragages Singapore and including companies such as the World Sport Group and DP Architects - won the bid for the project in January last year, defeating two other groups.

The hub was estimated to cost the Government $1.87 billion over 25 years. The bill included $1.2 billion for construction costs, with maintenance and operating expenditure making up the remainder.

A final contract that was to be signed last March between the Government - represented by the Singapore Sports Council - and the consortium, was delayed. The delay was believed to be due to funding and contractual issues. It remains unsigned.

In October last year, sources told The Straits Times that the project, originally due for completion next year, had been pushed back to 2012. The volatile financial crisis and rising construction costs were cited as the reasons.

Yesterday, Mrs Yu-Foo explained that the Sports Hub is a public-private partnership project. This means the consortium would provide the necessary funds to build the infrastructure and carry out the programming.

The Government would in turn pay the consortium for the labour costs and for operating the facilities over a 25-year period, she added.

Madam Ho asked if there was a final deadline beyond which the project could not be postponed further, given that its strategic aim is also to ‘broaden future growth and employment opportunities for Singaporeans’.

She also asked if the ministry could provide an analysis of the potential lost revenue from deferred or lost sporting events due to the delay.

Responding to these supplementary questions was Dr Vivian Balakrishnan, Minister for Community Development, Youth and Sports.

His ministry would not be able to disclose such details as negotiations were ongoing, he said.

‘I do not want to make any public announcements on deadlines or analysis of losses because that would compromise our negotiating position.’

S’pore govt in active talks with sports hub consortium

Source : Business Times - 3 Feb 2009

The Singapore government is in ‘active discussion’ with the Singapore Sports Hub Consortium which is facing funding difficulties amid the liquidity crunch.

Minister of State for Community Development, Youth and Sports, Yu-Foo Yee Shoon, told Parliament on Tuesday that the government is in talks with the group on how it intends to proceed with the multi-billion Sports Hub project.

Minister for Community Development, Youth and Sports, Vivien Balakrishnan, added that ‘negotiations are still ongoing’ and any details on deadlines or potential losses will compromise negotiations.

The earliest completion date of the project is now 2012.

A consortium led by a subsidiary of France’s Bouygues Construction won the tender early last year to build the $1.2-billion (US$793 million) complex including a dome-shaped national stadium, with a retractable roof, able to seat 55,000 people.

It was also to feature a 6,000-capacity indoor aquatic centre, an artificial river offering whitewater rafting, and a 3,000-capacity multi-purpose arena.

Known as the Singapore Sports Hub, the project was initially targeted for completion at the end of 2011, with the aim of making Singapore competitive with other major cities and sports venues.

Sports Hub may now be ready only by 2012

Source : Straits Times - 17 Jun 2008

SPORTS fans who have been excitedly awaiting the construction and completion of a new $1.87 billion playground will just have to wait a little longer.

The completion date for the Singapore Sports Hub, which will have a world-class stadium and aquatic facilities, has again been pushed back - and looks likely to be ready only by 2012.

It is not just sports fans who are crestfallen.

The two-year delay has also disappointed some national sports associations, who were hoping to bid to host world-class competitions at the new venue.

Singapore Rugby Union president Low Teo Ping said: ‘I hope there will be no further delays, or it’ll upset our plans to try to bring back the successful Rugby 7s tournament.’

When the Sports Hub project was first announced in April 2005, construction was scheduled to begin last year and to end by 2010. The date was pushed to mid-2011 the following year.

Last June, the Government added a late requirement after the three bidders had submitted their designs. It wanted a public water sports centre added.

So, it was back to the drawing board for the parties and a delay of several more months as amendments were made.

Subsequently, the Singapore Sports Hub Consortium (SSHC) won the bid in January and a final contract was expected to be inked with the Singapore Sports Council (SSC) in late March, and the National Stadium torn down soon after.

But delays, as the contract’s financial and legal details were worked out between the SSC and the consortium, gave the 35-year-old stadium a reprieve and the chance to host one final tournament - the Lions’ recent World Cup qualifiers.

Nearly all the paperwork has been settled now and the mega-project looks set to move forward.

Said a source involved in the discussions: ‘There’s finally light at the end of the tunnel, compared to a few months ago when we still looked to be deep in darkness.’

Sports Hub project director Poh Yu Khing said that the matter should be viewed in perspective.

‘As this is the world’s largest sports infrastructure public-private partnership project, it is imperative that more time is spent to ensure every aspect is carefully reviewed and taken care of.’

It is in the SSHC’s interests to conclude negotiations and ink the contract quickly.

This would mark the start of the public-private partnership (PPP) project’s 25-year lifeline, under which the SSHC would begin receiving an annual sum from the Government to build, run and maintain the Sports Hub.

Located on a 35ha site, the hub’s centrepiece is a new 55,000-seater complete with retractable roof, on the site occupied by the National Stadium.

It will also include a 6,000-capacity indoor Aquatic Centre, and a 3,000-capacity multi-purpose indoor arena.

Barring any major hiccups, the hub should still be ready by 2013 when Singapore hosts the 27th South-east Asia Games.

The hosting of the inaugural Youth Olympics in 2010 will not be affected. Various venues islandwide will stage the 26 sports for the Olympics for the young, with the opening and closing ceremonies at the Marina Bay floating platform.

Plans for $200m hotel in S’pore Sports Hub shelved for now

Source : Business Times - 30 Apr 2008

Analysts believe business decision is behind the move

PLANS for a $200 million hotel in the new Singapore Sports Hub appear to have been canned, even though preferred bidder Singapore Sports Hub (SSH) consortium said options to build the hotel at a later stage remain open.

Genting International, which was in discussions with the consortium about the proposed hotel, said in an announcement yesterday that it has ‘discontinued discussions with the consortium for the proposed construction of the hotel as it has been informed that the Singapore Sports Council (SSC) has decided not to have a hotel in the Singapore Sports Hub at this point in time’.

A Genting spokesman declined to comment beyond saying that ‘the ball now lies in their court’ regarding the proposal.

This is the first time news has broken that the hotel option would not be included in the deal. SSC did not respond by press time.

SSH consortium head Ludwig Reichhold said the proposed hotel was only an option and was ‘not confirmed’ at the time of bidding. ‘We are busy finalising the main contract with them now and as things were already running ahead with the main contract, negotiating more with the hotel factored in would have delayed the work,’ he added.

Analysts believe a simple business decision is behind the move. While there have been reports of strong demand for rooms, there are also a lot of hotels in better locations coming up in the years ahead. The floor area available could be much better used as retail space.

Hotels are a bit more complicated to run than retail and office space, Knight Frank director (research and consultancy) Nicholas Mak pointed out. Sharply fluctuating rates and branding and operational costs all add to the business risks. In the end, they need to make a ‘balanced decision’, he said.

The Sports Hub, whose construction was originally scheduled to begin last year, is already running late.

According to reports, the reason for the delay is that the paperwork for the nearly $2 billion public-private partnership project has not been completed. The latest sudden revelation suggests that more work is in store.

Earlier reports estimate the completion date will stretch from the end-2010 original date to at least 2012.