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Sport Singapore (SportSG) will be taking over the ownership and management of the Singapore Sports Hub from SportsHub Pte Ltd (SHPL) on Dec. 9, 2022.

This was announced in a press conference on June 10.

Termination of the public-private partnership agreement

The transfer of ownership comes with an early termination of the Sports Hub public-private partnership (PPP) project agreement which is supposed to expire in 2035.

The SHPL was engaged under the PPP in 2010 to design, build, finance and operate the Sports Hub.

The cost of this project was borne by SHPL, and SportSG has paid an annual fee from 2014 to finance the debt and the operations of the Sports Hub.

According to CNA, the government will have to pay about S$2.3 billion upon the PPP's termination.

No penalty for termination

The terms of the project agreement allowed for SportSG to decide if and when the project should be terminated and for the latter to take over the ownership and management of the Sports Hub.

Therefore, there is no penalty on SportSG for this termination.

Upon termination, SportSG will have to pay SHPL a sum assessed in accordance with the project agreement.

This substantially comprises the amount of the outstanding loan that was taken to construct the Sports Hub, representing a fair open market value of Sports Hub, according to the press release.

"This is an expenditure that would have been incurred by SportSG had it financed the Sports Hub from the start, without the PPP," the press release stated.

The cost of terminating the PPP arrangement and taking over the operations of the Sports Hub is estimated to be comparable to the cost of continuing with the PPP arrangement till 2035, the date of the PPP's expiry.

Ensuring a smooth handover

SportSG and SHPL will ensure that the handover in the coming six months will not affect the day-to-day operations and programming of the Sports Hub.

A new corporate entity will be set up by SportSG to own and manage the Sports Hub.

SHPL employees will be engaged to discuss employment opportunities available in the new corporate entity as SportSG hopes to retain the expertise and experience of these employees.

"We intend to retain the expertise and experience of SHPL employees, who will be given the opportunity to transit to the new corporate entity," SportSG said.

Stronger integration with Kallang Alive precinct development

SportSG claims it will have greater control and flexibility over the Sports Hub after the takeover.

The agency intends to make Sports Hub more accessible to the public while maintaining its commercial sustainability.

With the ongoing recovery from Covid-19, and the increasing willingness of the public to join large-scale events, SportSG foresees a rise in demand for large-scale sport, lifestyle and entertainment events.

The Kallang Alive precinct development was announced in 2019 as a 89-hectare mixed-use lifestyle destination for community sports as well as world-class entertainment and sporting events.

SportSG will look into integrating the Sports Hub with other upcoming facilities in the precinct such as the Kallang Football Hub -- to be ready by 2022, Kallang Tennis Centre -- to be ready by 2023, and Youth Hub to provide events and programmes to Singaporeans.

Some events that Singaporeans can look forward to include regular Sports Hub Open Houses and national school games to be held at the national stadium in the future.

Top image from Sport Singapore.