The flak sports minister Vivian Balakrishan takes every time he breathes a word about the Sports Hub delay defies common sense.
The minister told parliament on Tuesday that Singapore will not host the 2013 SEA Games and will attempt to host the 2015 edition if the Sports Hub is ready by then.
Given the complaints, you would think the Sports Hub is a necessity and the whole society will break down if it’s not built.
All the detractors never seem to answer the most basic and important of questions: Why should taxpayers (us) have to pay for the S$1.87 billion Sports Hub if the private sector doesn’t want to pick up the tab of building it?
Isn’t it obvious that if the consortium that won the right to build the Sports Hub can’t borrow the money to build it, it’s because bankers think the money can’t be made back quickly enough for them? Whoever heard of a banker who doesn’t want to make money?
So why should the Singapore government use the money you and I pay in taxes to foot the bill?
Why?
N.B. The Sports Hub will be financed through a public-private partnership (PPP) agreement, seen more commonly in public infrastructure projects such as power plants, hospitals and highways. Through the 25-year agreement with the Singapore Sports Hub Consortium (SSHC), the government effectively has passed all direct risk - both construction and operational - for the project to the consortium.
The government will not bear the cost of either direct capital expansion or operating and maintenance of the new Sports Hub complex. Instead, the government will pay an annual fee for services rendered over the course of the 25-year contract. The net present value (NPV) of the contract is estimated at $1.87 billion.
Perhaps another reason to be patient about the Sports Hub – who’s going to be there? Only 7,000 people showed up to watch an important Asian Cup qualifier between Singapore and Iran. If football can’t fill a stadium, which other sport can? The same game in a brand new stadium does not mean people will show up. Nobody goes to see a stadium. (Photo © Alan Chiang/Red Sports file photo)
The winning model of the Sports Hub. If financial institutions are not keen to lend money to build it, what justification is there to use taxpayers’ money to build the Sports Hub? (Photo © Les Tan/Red Sports file photo)
There are plenty of other things to focus on and throw money at in Singapore sport. A sports hub is not going to help Singapore be a more sporting nation one bit. Look at New Zealand. Its sports facilities are pretty woefull. It cannot afford big pretty stadiums. But it is one of the best sporting nations in the world. The love of sport has to come first, everything else comes after that.
The basic question hasn’t been answered – why should the taxpayers have to pay for it?
The public-private partnership (PPP) calls for the government (who manage our money) not to bear the cost of building and operating it. It’s S$1.8billion. Even a hospital doesn’t cost so much (the new Khoo Teck Puat Hospital will cost S$500 million).
Uncovering of talents starts in school – not in a beautiful spanking new stadium. I don’t think we should build a S$1.8 billion stadium hoping to uncover talents.
The Sports Hub is not pointless. I never said it was pointless.
I said patience. It will come. But not at our collective taxpayers’ expense.
And when is that going to happen? It is not just a stadium, it is a Sports Hub. Of course it isnt as important as a hospital. But, if you want to be seen as a sporting nation, you need to develop the Sports Hub. It is not the mere existence of the Hub, but how it can provide our athletes a place to train, to compete and uncover talents. The benefits of the Sports Hub goes far beyond the stadium itself.
How long do you want to wait? It’s already been delayed for so long it’s embarrassing. And I fully disagree with your justification that since football cant fill a stadium, then it is pointless anyway. Have you ever thought that the stadium was not full because our footballers basically suck?
So what is your point? Singapore should not have the SportsHub at all?
@Run Cadence: We should have it – when the private consortium can raise the funds to build it.
Here is how the Sports Hub is meant to be financed:
The Sports Hub will be financed through a public-private partnership (PPP) agreement, seen more commonly in public infrastructure projects such as power plants, hospitals and highways. Through the 25-year agreement with SSHC, the government effectively has passed all direct risk – both construction and operational – for the project to the consortium.
The government will not bear the cost of either direct capital expansion or operating and maintenance of the new Sports Hub complex. Instead, the government will pay an annual fee for services rendered over the course of the 25-year contract. The net present value (NPV) of the contract is estimated at $1.87 billion.