THE FEASIBILITY OF PUBLIC-PRIVATE PARTNERSHIPS (PPP) IN SINGAPORE

Abstract

Public-Private Partnership (PPP) was introduced in Singapore in 2003 and since then, only nine projects have been successfully procured within this span of seven years. Notably, only five of these projects are building infrastructure projects, whereas the other four projects are in the defence and IT sector. In addition, there has also been the cancellation of two projects after prequalification of bidders have been conducted. Based on this track record, this study aims to examine if PPP is a feasible procurement method for Singapore and identify the reasons behind the low take-off rate of PPP projects in Singapore. A total of seven interviews were conducted with advisors and industry players from the private sector who are involved in PPP projects in Singapore, and their opinions were collated. Through these interviews, it was found that PPP is a procurement method that is feasible to be used in Singapore but issues such as a lack of a champion and centralized authority to implement PPP projects, and absence of stakeholders management have resulted in only a few PPP projects being procured successfully. Further, the research carried out for this dissertation shows that as a result of the aforesaid issues, the cancellation of projects, and the lack of a published list of future PPP projects, there is currently a flight of capital, experts and expertise away from Singapore to other countries. In other words, there is an erosion of confidence in Singapore’s PPP market. There is a general consensus among the interviewee that the future of PPP in Singapore is unclear. Nevertheless, a number of recommendations have been made by the interviewees, which, if implemented, could help remove the obstacles for successful use of PPP in Singapore.