Changi Motorsports Hub construction halted
17 Feb 2011|8,208 views
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The stoppage on work was due to SG Changi failing to pay an S$50million instalment for piling work, although it was reported that S$10million was to be paid on 15 February, after SG Changi's chairman and shareholder Fuminori Murahashi secured a personal loan.
"The amount will be enough to cover the entire cost of the piling work, but it is not going to cover the amount needed to complete the project," SG Changi's director and general manager, Moto Sakuma, said, before adding, "We have secured US$200 million from investors in Hong Kong that would have allowed us to do so, but they have frozen the funds."
Construction on the site only began in December 2010, even though SG Changi promised to begin within three months after it won the tender back in March 2010. SG Changi was chosen ahead of two other bidders by the Government, to design, finance, build and manage the facility for 30 years.
The Straits Times reported that SG Changi had to source for funding in terms of bank loans and equity for the project, and there has been talk that the Japanese-led group lacked the necessary financial muscle to pull off the project, which led to many to believe that there would be delays in the construction of the hub.
SG Changi plans to have a 3.7km track capable of hosting any race except Formula One, a 1.2km karting circuit, grandstands, shopping and food and beverage outlets, and a racing academy at its Motorsports Hub, and Mr Sakuma was hopeful that fresh funds would come within a few weeks.
"We have been dealing with a local bank for the last two months," he said. "We're expecting something within this month."
Mr Alvin Hang, spokesman for the Singapore Sports Council (SSC), which is overseeing the project, would say only, "The SSC expects SG Changi to comply with all its commitments under the project agreement."
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The stoppage on work was due to SG Changi failing to pay an S$50million instalment for piling work, although it was reported that S$10million was to be paid on 15 February, after SG Changi's chairman and shareholder Fuminori Murahashi secured a personal loan.
"The amount will be enough to cover the entire cost of the piling work, but it is not going to cover the amount needed to complete the project," SG Changi's director and general manager, Moto Sakuma, said, before adding, "We have secured US$200 million from investors in Hong Kong that would have allowed us to do so, but they have frozen the funds."
Construction on the site only began in December 2010, even though SG Changi promised to begin within three months after it won the tender back in March 2010. SG Changi was chosen ahead of two other bidders by the Government, to design, finance, build and manage the facility for 30 years.
The Straits Times reported that SG Changi had to source for funding in terms of bank loans and equity for the project, and there has been talk that the Japanese-led group lacked the necessary financial muscle to pull off the project, which led to many to believe that there would be delays in the construction of the hub.
SG Changi plans to have a 3.7km track capable of hosting any race except Formula One, a 1.2km karting circuit, grandstands, shopping and food and beverage outlets, and a racing academy at its Motorsports Hub, and Mr Sakuma was hopeful that fresh funds would come within a few weeks.
"We have been dealing with a local bank for the last two months," he said. "We're expecting something within this month."
Mr Alvin Hang, spokesman for the Singapore Sports Council (SSC), which is overseeing the project, would say only, "The SSC expects SG Changi to comply with all its commitments under the project agreement."
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