Takeover of Sports Hub projected to cost S$2.3 billion, comparable to Govt’s payments if it continued with partnership

SINGAPORE: The full cost of terminating the public-private partnership (PPP) for the Sports Hub is projected to be S$2.3 billion, said Minister for Culture, Community and Youth Edwin Tong in Parliament on Monday (Aug 1).

This aggregate sum would be “comparable to the financial obligation committed under the PPP if we had chosen to continue with it, without termination”, said Mr Tong in a ministerial statement about the sporting facility.

Sport Singapore (SportSG) announced on Jun 10 that it will take over the ownership and management of the Sports Hub from current operator SportsHub Pte Ltd (SHPL) on Dec 9. 

SHPL, a consortium set up to build and operate the Sports Hub, was set to run the Sports Hub until 2035.

Mr Tong was responding to questions filed by Members of Parliament (MPs) soon after the announcement that SportSG would take over the facility.

His statement was meant to be delivered at a previous parliamentary sitting last month, but it was delayed until Monday as Mr Tong had contracted COVID-19.

A number of MPs, including Mr Seah Kian Peng (PAP – Marine Parade) and Ms Sylvia Lim (WP – Aljunied) asked how much the Government is paying in total for the early termination, and how it compares to what the Government would pay had the partnership continued until 2035.

Mr Tong explained that SHPL funded the full initial capital expenditure for the construction of the Sports Hub by taking out a loan. 

“This meant that Government did not have to contribute any upfront capital for the construction in 2010,” he said.

When the Sports Hub was up and running in 2014, the Government paid SHPL a fee of S$193.7 million every year, and would have continued to do so until 2035 if there had been no early termination.

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