THE Sports Hub is to be the newest jewel in Singapore’s stock of world-class infrastructure. As is the case with the Esplanade performing arts venue, it is an emblem of the nation’s steady transition to creativity and quality leisure. The stadium complex planned for Kallang is still what the advance publicity says it is. The design features which include a retractable roof undoubtedly will blow the people away when the facility with its related amenities opens for business.
This is the question on every lip: When? The project is behind schedule before even the first sod is turned. Dr Vivian Balakrishnan, the minister whose brief includes sport, said budget volatility on account of building and interest costs made it unwise to rush it. On this reckoning, delay could be indefinite. It is projected that the replacement for the National Stadium will not be ready for the 2013 Southeast Asian Games which Singapore is scheduled to host. Singaporeans are not accustomed to being smirked at over planning and organisation, their forte. Although the Games are not a marque event, passing them up because the main venue is nowhere near ready will be a letdown.
Questions will be raised about the ‘public-private partnership’, the model for the Hub’s construction and management. Private business will bear the building cost, after which the state will lease the property for an annual fee over a specified period, said to be 25 years. The consortium will operate the facility and be responsible for the sports programming. If it is unable to line up financing because of the lingering effects of the global banking debacle, it is bad luck. Nobody is to blame. Negotiations should continue, possibly with state help, to secure funding at an acceptable price. It would be a different matter if the consortium is having to review plans not only because of cost overruns, but perhaps also over the projections based on the business model, which is to operate the Hub as both facilities manager and originator of events ideas to keep the complex well used and profitable. Little is known about the difficulties encountered. The Singapore public ought to be updated as it has a proprietary interest in that tax money will be spent.
We are confident the Hub will turn out nicely: the state and the risk-takers gain, while the paying public has a ball year round. But a government review of the public-private model for certain projects is wise. Is it still feasible in the light of private capital undergoing structural change after the 2008 jolt? Shortages of steel, cement and other materials are variables. Public-private has an appeal in countries low on funds. This is not the case here.
Source : Straits Times – 3 Oct 2009
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