SGHOUSING.COM 新加坡房地产网

A HOSPITAL for the western part of the island, a prison extension and a centre for managing addictions - these are all projects that have been postponed by the Government, in part to facilitate the “timely delivery” of key developments such as theMarina Business Financial Centre (BFC) and the two integrated resorts by end of next year or early 2010.

Yesterday, the Government announced it was deferring yet another slew of public sector projects, this time worth $1.7 billion, to 2010 and beyond - bringing the total value of postponed projects to $4.7 billion thus far.

This was so that construction capacity and resources could be channelled towards the completion of key developments, including the Downtown Line, said the Building and Construction Authority (BCA).

Last November, the Government had said it would postpone at least $2 billion worth of public sector projects, a figure it bumped up to $3 billion in February with the growing strain on construction capacity.

One of the projects affected by this latest slew of deferments is the 550-bed Jurong General Hospital. But the BCA reiterated Health Minister Khaw Boon Wan’s earlier promise that the hospital, which is coming a decade later than originally planned, would open on schedule by 2015.

Mr Khaw had signalled, in April, that the tender for the hospital could be delayed until 2010 because of sky-high construction costs driven by the building binge. He had added that there was “no point incurring a high cost which we will have to pass on to patients”.

Other projects deferred previously include the National Addiction Management Centre and Changi Prison Complex’s Cluster C, the latter part of an ongoing redevelopment begun in 2000.

:What will not be affected: The building and upgrading of housing board flats, said the BCA yesterday.

:The integrated resorts and the first phase of the BFC, due to be completed by early 2010, and Downtown line scheduled to open in phases from 2013, are expected to help bolster Singapore’s growth as the global economy faces a double whammy of stagnation and spiralling inflation.

:The BCA said: “The construction resources freed up then would then be available for the deferred public sector projects, thereby achieving a better spread of construction resources and activities beyond 2009.”

:Ms Krist Boo, spokeswoman for Resorts World that is building the integrated resort on Sentosa, welcomed the Government’s move, saying it would “definitely make it easier for the progress of construction”.

:”We are on track to open in early 2010 as scheduled,” she added.

:National Development Minister Mah Bow Tan noted that feedback from leading quantity surveying firms showed the increase in construction costs was about20 to 30 per cent last year and 3 to 5 per cent in the first three months of this year.

:Driven by the high demand for construction resources and materials worldwide, the price of steel bars has risen by:85 per cent since June last year, while the price of concrete is about 18 per cent higher.

:But Mr Mah said the prices of new HDB flats would not be directly affected by the rise in construction costs as the flat prices are not set based on costs.

:”New flats will continue to be priced at a discount from their equivalent market prices so that buyers enjoy a generous subsidy,” he assured.

Source : Today - 23 Jul 2008