Sports Hub consortium facing funding problems

[zuoom]

not exactly housing matters. but it reflects the funding issue faced by many.    

Sports Hub consortium facing funding problems
By 938LIVE | Posted: 03 February 2009 1755 hrs
     
     
Photos    1 of 1          

Artist impression of Singapore Sports Hub Group's dome-shaped stadium
     
     
Related Videos
Sports Hub consortium having difficulty finding funds to start project

SINGAPORE: The consortium which is constructing the Kallang Sports Hub is having difficulty in raising the necessary funds to start the project, due to the ongoing financial crisis.

The government is in active discussions with the consortium to address this, as well as options on how to move the project forward.

Minister of State for Community Development, Youth and Sports Yu-Foo Yee Shoon revealed this in parliament on Tuesday, in response to a query from MP Ho Geok Choo.

Mdm Ho further pressed the ministry for a final deadline beyond which the Sports Hub cannot be further postponed.

She also asked the ministry to provide an analysis of the potential loss of revenue from deferred or lost sporting events because of these delays.

The earliest completion date of the Sports Hub project is now 2012, about two years later than originally planned.

In response, Minister for Community Development, Youth and Sports Vivian Balakrishnan said: "I hope members will appreciate the negotiations are still ongoing and I do not want to make any public announcements on deadlines or on analysis of losses because that will compromise our negotiating positions."

A consortium led by a subsidiary of France's Bouygues Construction won the tender early last year to build the S$1.2 billion complex, including a dome-shaped national stadium, with a retractable roof, able to seat 55,000 people.

It was also to feature a 6,000-capacity indoor aquatic centre, an artificial river offering whitewater rafting, and a 3,000-capacity multi-purpose arena.


- 938LIVE/AFP

via : http://www.channelnewsasia.com/stories/singaporelocalnews/view/406588/1/.html

[zuoom]

All these expensive projects are going up in smoke.  First IR problem, now Sports Hub. No wonder old man is so quiet nowadays.  :rolleyes:


 http://www.straitstimes.com/Breaking%2BNews/Singapore/Story/STIStory_333757.html
 
Sports Hub hits snag
 By Kor Kian Beng(http://www.straitstimes.com/STI/STIMEDIA/image/20090203/sg-hub.jpg)

 The Government has stepped in and is in 'active discussion' with the consortium to address the issue and also on how to get Singapore's biggest sports project moving. -- PHOTO: SINGAPORE SPORTS HUB CONSORTIUM

View more photos
 
 
THE Singapore Sports Hub Consortium (SSHC) is facing difficulty in securing funds to start the Kallang Sports Hub due to the credit crunch.
The project has already faced several delays.
 
The Government has stepped in and is in 'active discussion' with the consortium to address the issue and also on how to get Singapore's biggest sports project moving, said Mrs Yu-Foo Yee Shoon, Minister of State for Ministry of Community Development, Youth and Sports (MCYS), in Parliament on Tuesday.
 
She said: 'Given the current conditions in the financial markets, the consortium has found it difficult to raise the necessary amount of funds to start the project. The Government is in active discussion with the consortium to address this and options on how to move the project forward.'
 
Mrs Yu-Foo said the Government will make an announcement on 'how we intend to proceed with the project' after details have been firmed up.
 She was responding to questions from Madam Ho Geok Choo (MP for West Coast GRC) on whether the Government will prevent further delays in the sports hub project and also make credit more readily available to the consortium.
 
The SSHC, led by construction firm Dragages Singapore and include companies like World Sport Group and DP Architects, won the bid for the project in January last year, defeating two other groups.
 
The hub was estimated to cost the Government $1.87 billion over 25 years. The bill included $1.2 billion for construction costs, with maintenance and operating expenditure making up the remainder.
 
Located on a 35ha site, the hub will feature a new 55,000-seater complete with retractable roof, on the site occupied by the National Stadium, and also include a 6,000-capacity indoor Aquatic Centre and a 3,000-capacity multi-purpose indoor arena.
 
A final contract to be signed between the Government - represented by the Singapore Sports Council - and the consortium last March was delayed, believed to be due to funding and contractual issues.
 
In Parliament on Tuesday, Mrs Yu-Foo explained that the Sports Hub is a public-private partnership (PPP) project, which means that the consortium would provide the necessary funds to build the infrastructure and carry out the programming.
 
The Government would, in turn, pay the consortium for the labour costs and for operating the facilities over a 25-year period, she added.
 
Madam Ho asked if there is a final deadline beyond which the project cannot be postponed, given its strategic aim to 'broaden future growth and employment opportunities for Singaporeans'.
 
She also asked if the MCYS could provide an analysis of the potential lost revenue from deferred or lost sporting events due to the delay.
 
Dr Vivian Balakrishnan, Minister for MCYS, said his ministry would not be able to disclose these details as negotiations are ongoing.
 
Said Dr Balakrishnan: 'I do not want to make any public announcements on deadlines or analysis of losses because that would compromise our negotiating position.'

Mac on shortlist for Singapore sports complex (The Australian)
Florence Chong (April 05, 2007)

A MACQUARIE Bank-led consortium is one of three finalists in Singapore's first significant public-private partnership (PPP) project.
The consortium, Singapore Gold, made a $S650 million ($531 million) bid to build the Sports Hub complex on 35 hectares of reclaimed land at Marina Bay, where the $US3.6 billion ($4.43 billion) Marina Bay Sands integrated resort is being built.

Macquarie is the bid leader and financial adviser. If the consortium clinches the contract, the bank will be the debt and equity arranger.
Its partners include Shimizu Corporation, a large Japanese contractor, HOK Sports & Venues Event and Singapore infrastructure and building development consultant CPG Corporation. HOK Sports, currently working on the design for the London Olympic Stadium and architect for the Sydney Olympics Stadium, will be the project's stadium/sport architect and master planner.

The Singapore Gold Consortium is competing against two groups - one led by Austrian contractor Alpine Mayredder Bau and the other headed by the Hong Kong-based Dragages, part of the French Bouygues Group.

Singapore's Ministry of Community Development, Youth and Sports has said the successful consortium will be announced by the middle of 2007.
The sports hub, expected to begin operations in the middle of 2011, will have three stadiums, including an aquatic centre, and will be capable of hosting large international games such as SEA (South-East Asian) Games, Commonwealth Games and Asian Games.

The winning consortium will also assume management and operation of the existing Singapore indoor stadium.

The contract will provide for profit-sharing between the government and the consortium, which will have a concession to run the facilities for around 25 years.

Graham Brooke, KPMG's project finance partner in Sydney, said Macquarie was also in another consortium that had expressed interest in a PPP contract to provide student accommodation for the National University of Singapore.

Mr Brooke, who has been involved with PPPs for 16 years, said that Singapore planned to use PPPs to provide up to $S1.3 billion worth of capital investment over the next three to five years.

KMPG, which last week published a study on the PPP trends in Asia Pacific, said Singapore's Institute of Technical Education (ITE) had adopted PPPs as a vehicle for the development of two new colleges.
"Singapore and China are countries leading the shift to PPP projects in Asia, and this will generate new opportunities for Australian companies," Mr Brooke said.

He singled out construction and services companies as the most likely to pursue contracts as these PPP projects come on-stream in coming years.
He said firms such as Babcock and Brown and Macquarie Bank had established a presence in the Singapore market to pave the way for further deals around the region.

Oct 12, 2008
Sports Hub completion date: 2012
Venue's completion date pushed back further due to financial crisis and rising building costs
By Leonard Lim

The deepening financial crisis and rising building costs have combined to deal Singapore's biggest sports project a double whammy.
The result? Further delays for the 35ha Kallang Sports Hub, to be built on the site of the current National Stadium.

It is understood that the earliest completion date for the public-private partnership (PPP) project is now 2012, about two years later than originally planned.

This comes on top of a catalogue of delays that has already surrounded the project.

It means that Singaporeans will have to wait longer for events like Twenty20 cricket matches and an Asean Football League tournament, two major events promised by winning bidder Singapore Sports Hub Consortium (SSHC) as part of the Sports Hub's vibrant calendar.

These events will complement dining and shopping outlets planned for the venue.

Queries to the SSHC were directed to the Singapore Sports Council (SSC). An SSC spokesman said on Friday that there were no updates for now.

But an insider involved in the project told The Sunday Times: 'We'd be lying if we said we were not affected by the financial crisis.'

When announced in January, the project was estimated to cost the Government $1.87billion over 25 years.

In January, the SSHC - led by construction firm Dragages Singapore and including companies like World Sport Group and DP Architects - trumped bids from two other groups.

A final contract was expected to be signed by March.

This was delayed, and sources said one of the final obstacles before the contract could be inked between the SSC and SSHC was securing and finalising loans from financial institutions.

According to a PPP document on the Ministry of Finance website, such loans make up the majority - sometimes around 80per cent - of total funding for construction costs.

But the current financial climate has led to banks tightening credit and imposing stricter restrictions on lending.

The volatile financial situation is believed to be adding uncertainty within the SSHC, forcing the pushing back of the final contract's inking.

Also contributing to the delay is a worldwide increase in the cost of construction materials, which some market experts say has risen by up to 35per cent in the last year.

It is almost certain to translate into a surge in the $1.2billion construction cost of the project.

Maintenance costs and operating expenditure over the PPP project's 25-year lifeline make up the remainder of the $1.87billion tab to the Government.

But because of its PPP nature, earlier reports said the Government would not be liable for any rise in capital expenditure.

Yet the spiralling construction costs are understood to have set alarm bells ringing within the SSHC, and the sports council has been roped in to help find a solution.

A source said: 'There are now two options. One is to stick with the original plan and build the hub in its entirety, but incur additional cost.

'The other is to work within the budget already set, and see what facilities could be cut out.'

The hub's centrepiece is a 55,000-seat stadium with a retractable dome-shaped roof.

According to SSC's tender specifications, there must also be a 6,000-capacity indoor aquatic centre, a 3,000-capacity multi-purpose arena, a water sports centre, and 41,000sq m of leisure, shopping and dining facilities.

The SSHC's proposal includes a whitewater rafting facility, an indoor karting arena, and a water leisure park with flumes and slides.

These are believed to be being considered for removal if the original cost is to be adhered to.

Said a senior Singapore sports official who declined to be named: 'The Sports Hub should still be ready in time to host the 2013 South-east Asia Games.

'But these unforeseen circumstances have dealt a blow to our hopes of drawing top sporting events as soon as possible to establish ourselves further as a hosting venue.'

limze@sph.com.sg

via : http://www.singsupplies.com/showthread.php?t=16810

[zuoom]

Feb 23, 2009
Crisis delays Asian projects
(http://www.straitstimes.com/STI/STIMEDIA/image/20090223/southbeach-afp.jpg)
Construction of South Beach has not yet begun.
Cautious Asian property developers are delaying
some residential projects and reconsidering others
during the worldwide crisis which has tightened funding
and crimped buyer interest, industry players said.
-- PHOTO: AGENCE FRANCE-PRESSE

THE simple sign announces 'South Beach' and calls it 'Singapore's New Lifestyle Quarter' but there is little sign of life at the collection of dilapidated military buildings.
S'pore developers hardest hit
Singapore has been among the hardest hit.

Two years ago global real estate firm Jones Lang LaSalle described the city-state's market as the world's hottest. Property prices surged 31 per cent overall in 2007.
... more

The abandoned camp was to become a US$1.1 billion (S$1.7 billion) luxury hotel, office, retail and residential project known as South Beach.

Instead, it has become a symbol of the global economic downturn. Construction of South Beach has not yet begun.

Cautious Asian property developers are delaying some residential projects and reconsidering others during the worldwide crisis which has tightened funding and crimped buyer interest, industry players said.

Tight lending conditions during the worst economic crisis since the Great Depression of the 1930s are partly to blame for deferrals, industry players said.

Pairote Sukjan, president of Buathong Property in Bangkok, told AFP the crisis prompted Thai banks to cut back on lending to both condominium developers and buyers.

'Several condominium projects were delayed or cancelled because developers could not get loans from banks easily,' Mr Pairote said.

Real estate companies are still having difficulty securing debt at reasonable spreads, Macquarie Research said.

Developers 'must face reality'
According to media reports, China's biggest property developer by market value, China Vanke, said it postponed two residential projects last year, one each in Shanghai and Shenzhen.

The company's Shanghai-based spokesman, Li Yan, confirmed this without giving specific reasons.

China Vanke said in its third-quarter financial report that it would adopt a more cautious approach towards expansion.

'Together with other strategies such as cutting prices, property developers are trying out all kinds of means to endure this cold financial winter,' said

Hui Jianqiang, an analyst with the research firm Shanghai E-house R&D Institute.

India's top listed property firm, DLF, recently reported that consolidated net profit for the third quarter fell 68.7 per cent, hit by a liquidity crunch and a slowdown in large construction projects.

Rajiv Singh, the firm's vice chairman, said it would exercise caution and focus on timely completion of existing projects.

Malaysia will face delays in completion as developers cope with a tight credit market and large future supply, said Chua Chor Hoon, senior director for DTZ Research.

But the situation in Hong Kong is more positive, analysts said. 'In Hong Kong, the future supply is tight due to shortage of land supply. Hence there has been no delaying of projects recently,' Mr Chua told AFP.

Still, analysts said the economic downturn has led to sharp price falls in Hong Kong's luxury market. Local media reported last week that developers are engaged in a price war, slashing values by as much as 40 per cent.

The Standard newspaper quoted Richard Lee Chin-shing of Hong Kong Property Services as saying developers 'are being forced to face reality and must sell properties at prices the market can bear'.

Regionally, government stimulus measures introduced to fight the economic crisis could entice potential property buyers, Keppel Land said in its January earnings report. For the moment, though, there is nothing to lure anyone through the battered and rusted gates of the South Beach site.

via : http://www.singsupplies.com/showthread.php?t=18889

==============

without funds, things cannot continue to move.

without funds, things cannot even start.

without funds, things cannot be paid. (that's when things really start to fall apart.)

[criszt]

The sports hub should go on. I think it's important.

When iz up maybe our meetup can go there? Badminton , squash , courses etc. haha

[zuoom]

http://forums.hardwarezone.com.sg/showthread.php?t=2347340

[wyv9]

Stop again?!  I heard that they have gotten some funds to kick start this project... seems that they hit the dirt again...

It is difficult to get funding for mega project in the economic situation now...

[zuoom]

notice that 203.126.137.233

IP Address     Country     Region     City     Latitude/
Longitude    ZIP Code    Time Zone    
203.126.137.233    SINGAPORE    SINGAPORE    SINGAPORE    1.293
103.856    -    +08:00    
Net Speed    ISP    Domain
DSL    URBAN REDEVELOPMENT AUTHORITY    -

is printing this thread out. as via log.

[tags] NIPT

[zuoom]

DELAYS continue to dog the Sports Hub, with the earliest completion date for the troubled $1.87 billion project at Kallang now understood to be 2013.

This has put Singapore's hosting of the 2013 South-east Asia Games in jeopardy.

Some senior sports officials have privately raised the possibility that Singapore may have to forgo hosting that year's SEA Games if there are further delays.

Should that happen, it would be a major blow to the Republic, which had hoped to use the biennial multi-sport extravaganza to showcase the world-class facility - the centrepiece of which will be a 55,000-seater dome-shaped National Stadium with a retractable roof.

The Singapore Sports Hub Consortium (SSHC) hopes to sign the final contract with the Singapore Sports Council by year-end, said Mr Ludwig Reichhold, managing director of construction firm Dragages Singapore, on Thursday.

Dragages is the lead agency of the consortium that trumped bids from two other groups in January last year.

The contract was to have been inked in March last year but was delayed by financial and legal nitty-gritty.

The SSHC hopes to pull down the National Stadium by the first quarter of next year. The demolition will take about three months.

Construction of the hub can then begin and will take about three years to finish.

But a source said: 'Even with this timeline, a completion date of mid-2013 is still touch and go.'

http://www.straitstimes.com/Breaking%2BNews/Singapore/Story/STIStory_422403.html

via : http://forums.hardwarezone.com.sg/showthread.php?t=2480045

[tags] 2013

[zuoom]

and with all these delays...

http://www.thestandard.com.hk/breaking_news_detail.asp?id=16641

Construction delays put Singapore 2013 showpiece in doubt
(10-01 14:34)
Delays in construction of Singapore's US$1.3 billion (HK$10.14 billion) Sports Hub may cost the city-state its hosting rights for the 2013 Southeast Asian Games, a government minister has said.

Revealing that work on the project could be further delayed, Sports Minister Vivian Balakrishnan said: "Frankly, I think it's unlikely that it will be ready for the 2013 SEA Games.

"We will not be rushed into this, and I'm quite prepared to postpone our offer to host the SEA Games to a later date.

"The key point is, we want to make sure that when we... put an offer on the table, it is a good offer, and something that we can deliver.''

The Singapore Sports Hub Consortium won the contract to build and operate the Sports Hub on a 25-year lease. It includes a 55,000-capacity National Stadium with a retractable roof and 41,000 sqm of business, commercial and retail floor space.

The project has been repeatedly delayed due to high construction costs and the global economic downturn. Construction is now expected to begin early next year and will take four years to complete.

The 25th staging of the Southeast Asian Games takes place later this year in Vientiane, Laos, from Dec. 9-18.

The 11 competing nations are Brunei, Cambodia, Indonesia, hosts Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, East Timor and Vietnam.

Indonesia is due to stage the 2011 Games in Bandung and Semarang with Singapore due to host the 27th Games.

REUTERS    

http://en.wikipedia.org/wiki/2013_Southeast_Asian_Games

The 27th Southeast Asian Games is scheduled to be held in Singapore in 2013. The Games will be held at the new Singapore Sports Hub in Kallang, which replaces the old National Stadium & to be completed in 2012. [1] This will be the fourth time in history & the first time in 20 years the country has held the games.

However in 2009, Singapore may not host the Games as planned, due to delays in the completion of the Sports Hub. [2]

http://www.channelnewsasia.com/stories/singaporelocalnews/view/1008335/1/.html

   
S'pore may not host 2013 SEA Games due to Sports Hub delay
By Tan Yo-Hinn & Gladys Ow, Channel NewsAsia | Posted: 30 September 2009 1605 hrs

SINGAPORE : Community Development, Youth and Sports Minister Vivian Balakrishnan said Singapore may not host the 2013 Southeast Asian (SEA) Games as planned, due to delays in the completion of the Sports Hub.

The S$1.87-billion Sports Hub in Kallang is slated to be the main venue for the SEA Games.

When completed, it is expected to feature a suite of world class sporting facilities like a 55,000-capacity stadium and an indoor Aquatic Centre, as well as business and retail space.

But the project has been repeatedly delayed due to high construction costs and the global economic downturn.

Construction is now expected to begin only early next year and will take at least four years to complete.

That means it could miss the 2013 deadline, when Singapore is expected to host the SEA Games.

Dr Balakrishnan said: "The reason for the delays is because we have been so careful about spending money. If we had insisted on rushing through the project in the early part of this year, interest rates would have been exorbitant.

"I don't want to spend more than a cent than necessary. And I'd rather be cautious and deliberate, move forward but not be rushed into making hasty decisions or making decisions that would cost the taxpayers more in the long run."

But he gave the assurance that the Sports Hub project will not be cancelled.

Channel NewsAsia understands that the company responsible for the project, the Singapore Sports Hub Consortium, is unlikely to face penalties for the delays.

Many in the sports industry said hosting the SEA Games without the spectacle of the Sports Hub would not give Singapore the same impact of success it deserves.

A decision on whether Singapore will eventually host the 2013 SEA Games or the following one in 2015 is expected to be made soon.

Dr Balakrishnan was speaking at the launch of the Youth Olympic Games' Culture and Education Programme (CEP) pictograms, which represent the seven activities to promote the Olympic spirit.

Some 3,500 athletes aged 14 to 18 years who will be in Singapore for the 2010 Youth Olympics are expected to take part in the Culture and Education Programme. - CNA /ls

[zuoom]

and the may becomes a NO.

(http://redsports.sg/wp-content/uploads/2008/01/sscmcysmodel.jpg)

http://sports.inquirer.net/breakingnews/breakingnews/view/20100112-246943/Singapore-to-pull-out-as-2013-SEA-Games-host

Singapore to pull out as 2013 SEA Games host

Agence France-Presse
First Posted 17:36:00 01/12/2010

SINGAPORE—Singapore's sports minister confirmed Tuesday the city-state wants to pull out of hosting the 2013 Southeast Asian (SEA) Games because of delays in the construction of a new sports hub.

Vivian Balakrishnan, the Minister of Community Development, Youth and Sports, told parliament that Singapore had informed the SEA Games Federation it "would be ideal" to host the biennial event in 2015 when the facility is ready.

"The SEA Games is a significant event in Singapore's sporting calendar," he said, adding that Singapore would like the Games to be the first international event held in the sports hub.

"I therefore informed the president of the SEA Games Federation that it would be ideal for Singapore to host the 2015 SEA Games instead of 2013. He informed me that there are several other countries that are keen to host the 2013 Games," he said.

Singapore's decision to pull out of hosting the biennial event follows repeated delays to a $1.34 billion (1.87 billion Singapore dollars) Sports Hub, originally scheduled to be completed this year.

The facility, including a 55,000-seater National Stadium with a retractable roof, would have staged major sports such as swimming, athletics and football.

Balakrishnan said the project's delays were due to high construction costs and the global economic downturn.

Laos hosted the 2009 SEA Games in December.

http://singsupplies.com/showthread.php?t=48415

[zuoom]

strange. is it back online already?

[zuoom]

yes it is. with funds secured. it can move now.

http://news.smh.com.au/breaking-news-business/ugl-win-600m-singapore-hub-contract-20100827-13ut7.html

 UGL win $600m Singapore Hub contract
August 27, 2010 - 11:14AM

AAP

Engineering and facilities management company UGL Ltd says it has finalised a $600 million public-private partnership with Singapore Sports Council to maintain the Singapore Sports Hub.

The 25 year contract is for facilities management of the Singapore Indoor Stadium and the remaining greenfield Singapore Sports Hub venues, which are due for completion in 2014.

UGL is part of the Singapore Sports Hub Consortium, also comprising HSBC, Dragages and Global Spectrum, who were successful in winning the contract for development and maintenance.
Advertisement: Story continues below

UGL's services contract covers planned and preventative maintenance services, lifecycle services, cleaning, security, estate management, helpdesk, utilities and car parking management.

UGL chief executive Richard Leupen said the win supported UGL's growing end-to-end property services capability across the Asia-Pacific region.

"This long-term partnership will provide a strong and expanding revenue base for our property services business," he said.

© 2010 AAP
Brought to you by aap

via : http://singsupplies.com/showthread.php?t=71936

[zuoom]

NIPT
http://www.ip-adress.com/ip_tracer/61.8.220.131

61.8.220.131 IP address location & more:
IP address [?]:   61.8.220.131 [Whois] [Reverse IP]
IP country code:    SG
IP address country:       Singapore
IP address state:    n/a
IP address city:    Singapore
IP address latitude:    1.2931
IP address longitude:    103.8558
ISP of this IP [?]:    Infocommunication Provider
Organization:    Infocommunication Provider

[zuoom]

NIPT.
http://www.ip-adress.com/ip_tracer/78.46.16.70

78.46.16.70 IP address location & more:
IP address [?]:   78.46.16.70 [Whois] [Reverse IP]
IP country code:    DE
IP address country:       Germany
IP address state:    Bayern
IP address city:    Gunzenhausen
IP address latitude:    49.1000
IP address longitude:    10.7500
ISP of this IP [?]:    Hetzner Online AG
Organization:    PARADIGMA TECNOLOGICO S.L.
Host of this IP: [?]:    static.70.16.46.78.clients.your-server.de    [Whois] [Trace]
Local time in Germany:   2010-09-03 04:31

[zuoom]

http://www.ip-adress.com/ip_tracer/85.168.124.116
85.168.124.116 IP address location & more:
IP address [?]:    85.168.124.116 [Whois] [Reverse IP]
IP country code:    FR
IP address country:    ip address flag France
IP address state:    Ile-de-France
IP address city:    Fontenay-sous-bois
IP address latitude:    48.8500
IP address longitude:    2.4833
ISP of this IP [?]:    NC Numericable S.A.
Organization:    NC Numericable S.A.
Host of this IP: [?]:    85-168-124-116.rev.numericable.fr [Whois] [Trace]
Local time in France:    2011-02-08 12:41