Index of Content

PPP boost in Singapore

Launch of the PPP Handbook

In October 2004, the Ministry of Finance launched the first version of the Public Private Partnership Handbook, providing PPP guidance to Ministries and other government agencies. The main aims of implementing the PPP structure include: (a) allowing the public sector to get better value for money in the delivery of public services; (b) offering the private sector more business opportunities and more room to innovate and offer efficient solutions for public services; and (c) combining the expertise of the government and the private sector to meet the needs of the public effectively and efficiently.

Prevalence of PPP projects

Since October 2004, the Ministry of Finance has awarded only one PPP project, but has identified approximately S$1.3 billion in potential new PPP projects.

The PPP project that has already been awarded is a Design-Build-Own- Operate (DBOO) project at Ulu Pandan which was awarded to Keppel Engineering Pte Ltd on 15 December 2004. Under this PPP, Keppel Engineering Pte Ltd will supply NEWater and Industrial Water to the Public Utilities Board over the 20-year period from 2006 to 2026. The Ulu Pandan NEWater Factory, which is the fourth and largest NEWater factory in Singapore, is scheduled to commence the supply of NEWater and Industrial Water by the end of 2006.

A further four projects are being explored for PPP:

  • Incinerator Plant – the tender for the DBOO project for a new incineration plant to replace the existing plant at Ulu Pandan opened in March 2005. The National Environment Agency expects the new plant to be ready by 2009, at which point the existing plant will be shut down. The new plant is expected to have the capacity to incinerate 800 tonnes of refuse per day;
  • Sports Hub – the Ministry of Community Development, Youth and Sports is planning to redevelop the current Singapore National Stadium and the surrounding areas into a multi-purpose sports, leisure and commercial facility, providing the first significant social infrastructure PPP in Singapore. This DBOO project has an intended construction completion date of 2010 and will result in the largest sports and leisure development in Singapore;
  • National University of Singapore – this currently comprises a tender for Financial and Legal Consultancy Services to advise on the proposed development of student accommodation with ancillary facilities at the National University of Singapore; and
  • IT infrastructure projects – the tender for TradeXchange, a national integrated IT platform for the trade and logistics community, is in progress.

Nambi Viswalingam, Clifford Chance
Asia Supplement to International Construction Newsletter
Autumn 2005

Cannonway wishes to thank Nambi Viswalingam and Clifford Chance LLP for contributing this article. All rights reserved to Clifford Chance. This article is not a substitute for detailed advice on specific transactions and problems and should not be taken as constituting legal advice on any issue discussed. Clifford Chance is a major international law firm with offices in business centres around the world.

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