No public-private partnership for Changi Airport Terminal 5

The Government has ruled out bringing in private players to help fund and own the future Changi Airport Terminal 5 (T5); putting paid to years of industry talk that it could be privatised like some other airports, including London's Heathrow and Germany's Frankfurt. A public-private partnership is off the table, the Transport Ministry told The Straits Times.

The decision met with the approval of analysts, who said having the Government wholly run the show ensures that Changi Airport will not focus on profits possibly at the expense of service standards and efficiency. In particular, the experience of Singapore's MRT operations - which are being reclaimed by the state after several major breakdowns - has been instructive.

But this does mean that taxpayers, the airport operator and users including travellers and airlines are likely to foot the bill for T5, which is expected to run to tens of billions. How the final bill will be split has not been decided.

Slated to open at the end of the next decade, T5 is the crown jewel of Changi East and will become one of the world's biggest airport terminals. It will help to more than double Changi Airport's passenger capacity - up from today's 66 million a year to 135 million. The massive investment required meant that for years, there had been speculation that the Government could rope in private companies, including foreign entities, to help pay for T5.

Terminals 1 to 4, which cost less than $10 billion in total, are owned and operated by government-held Changi Airport Group (CAG). But in the end, it is clear that the Government is not willing to take the risk with T5, given stiff competition for air hub supremacy among Asian airports and the significance of the aviation sector to Singapore's economy, said analysts.