Singapore Sports Hub= Albatross around the neck of the SG Government?

Discussion in 'Asia' started by Bic_Cherry, May 1, 2019.

  1. Bic_Cherry

    Bic_Cherry Active Member

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    Singapore Sports Hub= Albatross around the neck of the SG Government?

    [​IMG]https://www.straitstimes.com/sport/sports-hub-must-serve-all-sporeans
    According to 'Sports Hub must serve all Singaporeans: Chairman Bryn Jones', ST: 1st May 2019, "Under the arrangement, the Singapore Government makes annual payments of S$193.7 million to SHPL over a period of 25 years starting from 2010, to run the Sports Hub."

    After so many years as state secret, we are finally informed that PAP government pays SHPL S$193.7 million million p.a. and cannot even use the venue for NDP, what a big joke. ("The Straits Times understands the Sports Hub wanted $26 million for another 35 days for rehearsals." (ST 23.6.2016) https://www.straitstimes.com/opinion/what-price-for-ndp-at-sports-hub )

    According to NLB http://eresources.nlb.gov.sg/infopedia/articles/SIP_2015-10-26_160204.html "Construction of the Sports Hub began in September 2010 and cost S$1.33 billion."

    As I recall (IIRC), idea was for the private consortium to pay for the building costs first but amortized the costs over 25 years so that the SG government could save on interest costs. $1.33 billion amortized over 25 years (interest free) is just S$53.2 million p.a. .

    Now the Straits Times says that SG govt is paying them $193.7 million p.a., which is an excess of $140.3 million p.a. over the building costs, and thus ostensibly as fees "to run the Sports hub".

    Sounds almost identical to the bus contracting model to me where by government pays people to operate a public bus service with a bonus/ penalty component for achievement of KPI like bus punctuality, safety and frequency. https://en.m.wikipedia.org/wiki/Bus_contracting_model_of_Singapore but with the government retaining all the fares collected.

    However, afaik, it is the consortium which keeps the profits from whatever fees collected, e.g. ticket sales profits from concerts, international sports events etc as well as the booking fees for OCBC arena court bookings, swimming pool, stingray, lazy river, sea sports rental fees etc entry fees and all the rents collected from Kallang Wave Mall.

    If the PAP government is paying SHPL $140.3 million p.a. just to run the Sports hub (sans construction loans interests costs), then I should expect NDP to be held at sports hub more frequently, free entry vouchers to sports hub facilities worth $10/pax p.a. (this would total only $40 million max for 4 million resident population and possibly only $16 million if optimistically, just 40% are actually used) as well as perhaps an income also of $140.3 million p.a. to break even, considering the number of international full house k-pop concerts held with tickets sold at up to S$500/pax (since the massive prime land area is essentially provided FOC).

    Over 25 years PAP Singapore government will overpay $3.512 billion in excess of the original $1.33 building costs of the sports hub. This would be enough to build >2 Changi Airport Jewel which costs justs S$1.7 billion each to build https://en.m.wikipedia.org/wiki/Jewel_Changi_Airport

    In PAP, Singapore has bought itself an overpriced white elephant just to make Singapore skyline look good? Why is PAP on such a desperate buying spree for such obscenely (almost 4x) overpriced national monuments?

    At this rate, may I kindly ask, how much is the Singapore government paying to run the world's tallest indoor waterfall at the Changi Jewel, over the next 25 years? (With sports hub costing 263.7% in excess of 25yr amortized building costs to run, $179.3 million p.a. over 25 years to operate the jewel waterfall would not be an unreasonable guess (S$247.3 million p.a. if 25 yrs amortized building costs of jewel included as well)).
     
    Last edited: May 1, 2019

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