Since the early 2000s, Singapore has pursued PPP to develop desalination, NEWater, incineration plants, and social infrastructure, especially the Institute of Technical Education (ITE) College West and Singapore Sports Hub.
For example, Singapore’s Jurong Island Desalination Plant, officially opened in April, leverages the strengths of a private consortium formed by two companies. ST Engineering provides expertise and design innovation to increase energy efficiency, and the plant derives synergies from colocation with Tuas Power. Power plant.
For sports hubs, it was thought that private networks would be the key to unleashing value by hosting major sporting and entertainment events to get the most out of the facility. Of course, one possible model was for the government to build a sports hub and let the event management company do the programming.
But that would not have allowed stakeholders to engage upstream to share risks and optimize the design to meet its goals. Sharing the risks of a project between the public and private sectors is often seen as instilling financial discipline, as private businesses have an incentive to ensure the financial viability of the project. ..
This was a very ambitious project. As the world’s largest integrated sports infrastructure PPP project, this was in contrast to many cookie cutter building projects normally done through PPP in other countries.
In addition to the large capital requirements and complex construction requirements required, the project involves service providers across various business units such as retail, catering and commercial rights, making this a particularly complex business. increase.