With a well-established legal system, supportive banking sector and increasing body of experts familiar with PPPs, Singapore seeks to become a regional centre of expertise and financing for PPPs.
Infrastructure procurement: The Singaporean Government introduced PPPs in order to achieve better value for money in the delivery of public services, though enhanced effectiveness and efficiency in the delivery of non-core governmental services. While Government-linked Companies (GLCs) have long played a key role in the development of infrastructure, the role of the private sector increased through partnership arrangements with GLCs.
PPP projects: The PPP concept was first brought to Singapore in 2003 when the first PPP contract was awarded by the Public Utilities Board (PUB) for a desalination plant. The first genuine availability-based social infrastructure PPP was ITE College West (2008). Despite the favourable legal environment, only a small number of PPP projects have been implemented so far, in a number of sectors including education, leisure, water and waste. All have been conducted either on a Design Build Finance Operate (DBFO) basis or a Design Build Own Operate (DBOO) basis.
|Subsidies & Guarantees|
|Subsidies||Limited public support available for private investors.|
|Infrastructure Tax Incentives||No specific policies are in place to provide tax incentives for PPP projects, however Singapore offers tax incentives to support the country’s economic and industrial development as a whole. The main incentives, stated in the Income Tax Act and Economic Extension Incentives Legislation, include pioneer incentives, investment allowances and development and expansion incentives.|
|Viability Gap Funding (VGF)||No VGF currently in place.|
|Financing||Clifford Capital is a specialist finance company established with the support of the Government of Singapore. It assists companies with a meaningful presence in Singapore in their investments or exports overseas, in order to capture business opportunities around the world. It is focused primarily on providing project finance, asset-backed and other structured debt financing solutions to companies in the infrastructure and offshore marine sectors.
|Other Public Support|
|Land Acquisition Support||Land can be acquired through a lease contract and freehold which includes Grant in Fee Simple (GFS) and Statuary Land Grant (SLG). The Singapore Land Authority can provide land to private investors through a sub-lease contract.|
|Project Development Fund (PDF)||No PDF currently in place.|