A STRATEGIC public private partnership

Transcription

1 A STRATEGIC public private partnership

2 SINGAPORE SPORTS HUB, where singapore comes to play The Singapore Sports Hub has been developed under a 25-year Public-Private Partnership (PPP) agreement between Sport Singapore and Sports Hub Pte Ltd, making it one of the largest sporting infrastructure PPP projects in the world today. It serves as a dedicated venue where Singaporeans can come together as a community to watch, play and support sports and entertainment. Targeting all demographics from elite athletes to the general public the Singapore Sports Hub campus is a space where Singaporeans can play sports, attend a concert, have dinner with their families by the waterfront or visit the sports museum and library with their children over the weekend. There is something for everyone

3 THE PROject in a nutshell origins of the project It all started in 2001, with the Committee on Sporting Singapore Report The Committee on Sporting Singapore (CoSS) comprised major stakeholders including the Singapore Sports Council. It made 40 recommendations to inculcate a sporting culture through the three pillars of Sports for Life, Sports Excellence and Sports Industry. Recommendation 36: Developing a multi use Sports Hub It is recommended that the National Stadium be redeveloped into a multi-use Sports Hub. A feasibility study will be conducted to determine the location, type and size of the facilities to build, range of events, impact on Community, business model and global positioning

4 A Catalyst for Sports Vision 2030 is a joint project led by Sport Singapore and The Ministry of Culture, Community and Youth with active participation from the public, people and private sectors. In 2011, after many months of consultation, Vision 2030 ended up with a final report, including 20 recommendations on how sport can align with national priorities to develop resilient, tenacious people and strong, united communities: At Vision 2030, we believe that sport can help to maintain Singapore s social integrity and economic strength. Sport can help us overcome the challenges being presented by an ageing population, rising regional and international economic competition and the increased diversity within our multicultural, multiracial society. ( ) By its very nature, sport develops the attributes that we want and need to compete in the evolving global conditions: a winning spirit, a respect for teamwork, a commitment to leadership and, yes, a love of country. These are principles that we want firmly rooted, not just in our athletes but throughout our society, in our workforce, our professionals, our educators, our policy planners and our uniformed and public service officers. Singapore Sports Hub was designed and thought as a catalyst for sports. It is one of the major milestones of the Vision 2030 strategy

5 The Sail (2008) Ritz Carlton Millenia Singapore (1995) Fullerton Hotel (2000) DRAGAGES SINGAPORE AT THE HEART OF THE CONSORTIUM A STRONG EXPERTISE Dragages Singapore Pte Ltd is a leading engineering and construction firm in Southeast Asia and a member of Bouygues Construction, one of the foremost construction groups in the world. Dragages is well-known for leveraging on innovative engineering solutions to deliver difficult projects on time to the highest standards of safety and quality. The company combines the strength of an established global group and the on-ground knowledge of a local company to cover the full scope of design, construction, maintenance and development of all types of buildings and infrastructure

6 THE OFFER From may 2006 to february 2007, Dragages assembled the Sports Hub Consortium and led the preparation of its bid centered on sports development: Design & Build Finance Maintenance SPORTS DEVELOPMENT Operations Events Food & beverage, Retail The Singapore Government has not procured a contractor, but engaged a strategic partner to help deliver on national and community objectives. We, Dragages Singapore, managed to assemble the best actors, with international expertise and local knowledge, in order to create a fully integrated world class Sports, Entertainment & Lifestyle Hub for everyone in Singapore. Ludwig Reichhold Managing Director of Dragages Singapore

7 The Equity Partners DRAGAGES ASSEMBLED THE BEST ACTORS InfraRed Capital Partners Limited is an independent investment firm specializing in the infrastructure and real estate asset classes. It invests in projects across the globe, seeking to add value through active management through specialist funds. Dragages Singapore Pte Ltd is an engineering and construction company active in Singapore since Dragages is wholly owned by Bouygues Construction, a French company which has been involved in more than 30 Public-Private Partnership projects worldwide and has developed significant expertise in the development and operation of social infrastructures. DTZ is a global leader in property services. They are an equity partner of the Singapore Sports Hub and have also been sub-contracted to lead in the facility maintenance and asset life-cycle management of the facility. Together with parent company, Comcast Spectator from the USA, Global Spectrum Asia has significant expertise and experience as facility owners and operators, and is one of the fastest growing venue management firms in the world. They have been contracted to manage and operate the Singapore Sports Hub

8 THE TEAM AND CREATED THE SINGAPORE SPORTS HUB CONSORTIUM: EQUITY Shareholder agreement Loan Facility agreement DEBT Design & Construction facility managment venue operations sponsorship & sport events retail ict library catering Dragages Singapore DTZ Global Spectrum Asia World Sports Group SMRT ALPHA T-Systems CIVICA Sports Catering Service

9 WHAT IS A PUBLIC-PRIVATE PARTNERSHIP? A Public-Private Partnership (PPP) constitutes a form of long-term concession contract enabling a public authority to use a private partner to design, finance, build and operate a facility in return for a rent or a toll. It guarantees the authorities controlled finances, the quality of the building or structure and the related services, and complete ownership when the lease expires. THE PUBLIC- PRIVATE PARTNERSHIP MODEL The PPP process is characterised by the very simple operational undertaking of the client, who only has to deal with one single contractor, who coordinates the various activities and provides support to the client on a long-term basis. In exchange for rent paid over several years, the client spreads its investments and the site operating budget over time. The payment mecanism built into such contracts ensures that payments to the concessionaire are dependent on the availability of the facilities and on the performance of the services. For its part, Dragages Singapore undertook to arrange with its partners all the resources needed firstly to design, finance and execute the project within the specified deadlines and budget then to operate and maintain the structure for a guaranteed fixed price, all with the specified performance and quality of service for its users. At the end of the partnership contract, the client (Sport Singapore) will become sole owner and beneficiary of a unique facility which, thanks to the long-term involvement of teams from Dragages Singapore and its partners, has maintained its value. Design BUILD operate transfer FINANCE

10 The PPP Financing scheme 25 years Concession - 100% upfront financing by the Concessionaire The Consortium revenue includes a fixed availability payment and a share of commercial revenues THE KEY BENEFITS OF A PPP: In a PPP project all the parties involved in construction and operations are involved from day one, allowing the architects and the contractor to take on board the requirements of operators and end users. Decision criteria are not based on construction cost alone (which often results in high maintenance costs), but on whole life cycle cost (construction + maintenance), giving the best value for money. The investment and operation costs of a PPP project are guaranteed and predictable over a long period

11 MILESTONES OF THE PROJECT Feasibility Study Development of Specifications & Marketing sounding 2006 Pre-qualification stage and Invitation to tender 2007 Submission of proposals and Final Clarification Stage 2008 Preferred Bidder Phase August 2010 Financial Close and Final Contract Signing September 2010 Beginning of works June 2014 Handover of the project August 2035 End of the Concession

12 A strategic partnership For a national and global landmark The Singapore Sports Hub in figures: A 25-year commitment to create a destination and lifestyle hub One of the largest sporting infrastructure Public-Private-Partnership (PPP) projects in the world - SGD$1.33 billion (equivalent to 770 million) A 35 ha fully integrated, state-of-the-art destination open year-round to the public 9 different facilities providing a variety of unique experiences, including community programming and Experience Sports initiatives for everyday use