The media reported on Thu (‘Final theatre of Circle Line to cost $4.85b‘, 11 Apr) that a final widen of Circle Line that would supplement 3 some-more stations joining Marina Bay to HarbourFront is approaching to cost $4.85 billion. But in 2015, it was projected that it should cost usually $3.7 billion. Hence, there is a inequality of $1.15 billion from a initial projection.
In new years, a costs of a series of infrastructure projects undertaken in Singapore have also deviated from their initial projections.
Marina Coastal Expressway
For instance in 2007, a supervision motionless to give capitulation for LTA to build a 5 km prolonged Marina Coastal Expressway (MCE) during a cost of $2.5 billion.
At a time, a supervision said, “The MCE will support to a projected boost in trade volume generated by a high-density developments in a Marina Bay area and also offer as an essential ride couple from a Marina Bay to a rest of a island.”
The plan was approaching to be finished by 2013. About 2 years after during a belligerent violation rite of MCE on 28 Apr 2009, in a press release, LTA pronounced it had awarded contracts value about $4.1 billion for a construction of a MCE.
There was a outrageous inequality of $1.6 billion.
In 2012, a cost of Downtown Line plan was reported to have “soared” by 70% (“Downtown Line costs soar by some-more than 70%“).
ST reported, “A spike in construction cost has contributed to a MRT Downtown Line check rising by some-more than 70 per cent from an strange guess of $12 billion to $20.7 billion.”
“Half of this $8.7 billion boost was attributed to a pointy arise in construction cost, with a other half related to a series of changes to a project.”
When a news came out, LTA responded by observant that it would “take steps” like “inviting some-more firms to bid for projects” to rein in prices.
Jewel during Changi
Then we have a famous Jewel during Changi. The plan was projected to cost $1.47 billion in an proclamation in Dec 2013 (“Project Jewel during Changi Airport to cost $1.47b“).
This plan is a corner try between a Changi Airport Group (CAG) and CapitaMalls Asia. CAG is a venture’s infancy shareholder, with a 51 per cent interest with CapitaMalls Asia (CMA) owning a remaining 49 per cent. CAG is unconditionally owned by a Singapore supervision and run by Temasek while Temasek is a determining shareholder of Captaland that owns CMA.
It is touted to be a iconic centre square of a Changi Airport and was specifically announced by Prime Minister Lee Hsien Loong during a National Day Rally in 2013.
However, when a Jewel non-stop a doors to a open for preview final week (11 Apr), a media reported that a final cost of a plan was already $1.7 billion, or $230 million more.
So, a doubt is, who is profitable for all these cost overruns?