Maximising value of Sports Hub for Singaporeans

Question

Ms Sylvia Lim: To ask the Minister for Culture, Community and Youth (a) to date, how much payments has the Government made to the Sports Hub partner per year for building, maintaining, and operating the facility; and (b) what is the estimated total amount that will be paid at the end of the 25 years.

Response

Minister Grace Fu: Sports Hub Pte Ltd (SHPL) was contracted to design, build, finance and operate the Sports Hub for 25 years under the public-private partnership (PPP) arrangement.

1. Under the PPP arrangement, Sport Singapore is contracted to pay SHPL an annual availability payment of $193.7M (subject to inflation) from the commencement of operations.
   

2. The Government began making the full annual availability payments to SHPL in July 2014. At the end of the concession period, SHPL is required to hand back the facilities to the Government.
   

3. The availability payments under the PPP arrangement help to spread the total project cost evenly over the duration of the contract. It also requires the private partner to bear the construction and operational risks of the project. For instance, SHPL had to manage at its own cost, the challenges of poor soil conditions during the construction phase, as well as rectify early issues with the National Stadium pitch and roof.
   

4. Sport Singapore closely monitors the performance of SHPL to ensure that they remain accountable for the goals of the project and seek to maximise the value of the Sports Hub for Singaporeans.