No additional costs incurred by SSC for defunct motorsports hub: Lawrence Wong
- POSTED: 09 Jul 2013 00:55
The Singapore Sports Council has not incurred any costs beyond what it would normally incur for the tender put up for Changi Motorsports Hub project. Acting Minister for Culture, Community and Youth Lawrence Wong said this in a written reply to a question in Parliament.
SINGAPORE: The Singapore Sports Council has not incurred any costs beyond what it would normally incur for the tender put up for Changi Motorsports Hub project.
Acting Minister for Culture, Community and Youth Lawrence Wong said this in a written reply to a question in Parliament by MP Muhamad Faisal Abdul Manap, who among others asked if there was a flaw in the financing arrangements for the Changi Motorsports Hub.
Mr Wong said that as a general policy, the government provides funding for the development of public sports facilities to meet the needs of the general public and the development of our national athletes, and where there is market failure.
He said Changi Motorsports Hub was all along intended as a commercial and not a public venture, and companies, in bidding for such projects, were expected to be diligent in managing their own risks.
However, SG Changi later found itself unable to secure the necessary funds to continue with the project after paying for the land, leading to SSC's termination of the contract with Singapore Changi.
Mr Wong said considering the limited general public outreach and community impact of the project, and in consultation with other government agencies, the government concluded that it would not be a good use of public funds to accede to the proposals.
He said during the initial tender exercise, SG Changi had reimbursed SSC's professional advisers' fees.
Mr Wong added that any post-termination costs in respect of or relating to the site, such as the depreciation cost of the site, the cost of upkeeping the site and the reinstatement of the site, will be extracted from the eventual partial refund to SG Changi after the land is returned to the state.
He said that while the termination of the project was primarily due to the inability of SG Changi to raise funds, the government has learned to be more circumspect about the financial strength and possible financing challenges faced by bidders in awarding future tenders.