Debated in Parliament on 3 Sep 2019.
Mr Leon Perera asked the Minister for Trade and Industry whether the Government will continue to encourage investment in the Amaravati city project following the change in the stance of the government of India in respect of seeking funding for the project.
Mr Speaker, in 2014, the then government of Andhra Pradesh state sought Singapore's assistance to masterplan its new state capital, Amaravati. Subsequently, a consortium comprising Ascendas-Singbridge Pte Ltd, which is now part of CapitaLand Group, and Sembcorp Development Ltd was awarded through a Swiss Challenge process, the opportunity to form a joint venture with an AP government company to master-develop the capital using green and sustainable urban solutions in which Singapore companies have globally recognised expertise. This collaboration is complemented by a G-to-G Memorandum of Understanding (MoU) between the Government of Singapore and the government of Andhra Pradesh on training and capacity building, which has been endorsed by the government of India.
The new state government in Andhra Pradesh that took office on 30 May 2019 is reviewing its plans for the capital city project, amidst its other priorities. In July, the government of India withdrew its request to the World Bank for a US$300 million loan for the project and the Asian Infrastructure Investment Bank also subsequently withdrew a US$200 million loan. The Singapore consortium companies are closely following these developments and evaluating the impact on the investment opportunity.
Sir, just two brief supplementary questions for the Minister. Before I do that, let me declare my interest as the CEO of a consultancy that helps companies invest in India and other countries.
Firstly, does the Minister have any sense of the total investment that has been made by Singapore companies in this project to-date? Secondly, has there been to-date any significant expenditure of state funds in terms of, for example, co-investment or grants to support the companies in terms of the project?
Mr Speaker, the investments made by companies is commercially confidential. I am not privy to their details nor able to give the Member a response.
Secondly, in terms of whether there are any subsidies or grants by the Government for investments made in the state, the answer is no.
Order. End of Question Time. Orders of the day.
[Pursuant to Standing Order No 22(3), Written Answers to Question Nos 15-20, 23-25, 27-28, 30, 32-33 and 35 on the Order Paper are reproduced in the Appendix. Question Nos 21-22, 26, 29, 31 and 34 have been postponed to the sitting of Parliament on 4 September 2019.]
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