Breakdown of $193.7 Million Annual Fee Paid to Sports Hub Pte Ltd

Ms Hazel Poa asked the Minister for Culture, Community and Youth with regard to the $193.7 million annual fee paid to Sports Hub Pte Ltd (a) whether the annual fee includes other costs apart from operations, maintenance, lifecycle and debt servicing costs; (b) what is the breakdown of these different costs from the annual fee paid; and (c) whether there are contractual clauses in the Project Agreement that allow the Government to discontinue payment of the entire annual fee in the event of non-performance by SHPL.

About 65% of the annual fee of $193.7 million goes towards SHPL's debt service repayments for the loan they took out to finance the Sports Hub construction. The remaining amount goes towards the day-to-day maintenance and operations, as well as lifecycle costs of the assets.

These payments are subject to SHPL's achievement of a broad and comprehensive range of Key Performance Indicators (KPI) stipulated within the Project Agreement. These include the availability of Sports Hub facilities and performance of services, such as events and activity programming, as well as cleanliness, estate management, security and quality of customer care. Deductions to the annual payments can be made if the KPIs are not met.