The Singapore government wanted to develop the local sports industry and upgrade the old national stadium. Mark Rathbone, partner of global advisory firm PwC, was appointed to consult and manage the procurement issues for the project. The government decided to finance the Sports Hub through a Public-Private Partnership to save on the capital outlay. Unitary payments would only be made once the facility was made available for use by the private consortium.
As the integrator, Rathbone had to prepare a concession agreement that was perceived to be fair to all parties involved. He had to ensure that government entities as well as private stakeholders understood their roles and responsibilities in the bidding and building process. Once a preferred bidder was chosen, the main stumbling block was to finance the project. The 2008 financial crisis resulted in reduced risk appetites for banks. Rathbone had to put together a club deal by negotiating separately with 14 lenders. Banks were only willing to take on smaller quantum deals and extend loans with tenors of only ten years. A government guarantee had to be obtained to cover the refinancing risk for the rest of the 25 year concession period. Rathbone was a PPP advocate but wondered if the process, which was finalised in August 2010, could be improved for future projects in Singapore or further afield.
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