Building a heart for sports

Singapore hasn’t built any major sporting venues since 1973 but, with its Sports Hub project, it’s making up for lost time in a big way

Singapore's sporting star is in the ascendancy. In January 2008, the city-state's government chose Singapore Sports Hub Consortium (SSHC) as the preferred bidder for what is billed as the world's first sports facilities infrastructure public-private partnership project. The announcement will set in motion the development of a unique cluster of venues at a 35ha waterfront site in Kallang that is set to be the envy of Singapore's Asian neighbours. It will be built at a cost of about USD 870m (GBP 435m).

The Sports Hub is a major part of Singapore’s
continuing urban development

The existing national stadium, built in 1973, will be demolished to make way for a 55,000-capacity retractable-roof replacement. A 6,000-capacity indoor aquatic centre and 3,000-capacity highly flexible multipurpose arena are also planned. Another part of the complex will be the existing 12,000-capacity Singapore Indoor Stadium, a new water sports centre for dragon boat racing, rowing and kayaking, a sports medical centre, 41,000 sq m of commercial space including shops and restaurants and other leisure developments including a hotel.

All of this is scheduled to open at the end of 2011. With such a collection of venues on the horizon, it's small wonder that Dr Vivian Balakrishnan, minister for community development youth and sports, was in such effusive mood when he unveiled the consortium that will design, build, operate and finance the project. He said: “The strength of the consortium's proposals, together with the nation's sporting initiatives, will place the sports hub alongside the world's best and most dynamic sports, entertainment and lifestyle venues”.

A team of big players
Dragages Singapore, an engineering and construction company active in Singapore since 1984, will lead of the consortium. This will involve underwriting the responsibility of designing and building the facilities as well as participating in these operations. The architects are Singapore-based DP Architects and Arup Sport, which formed part of the consortium responsible for designing Beijing's “Bird's Nest” stadium for the Olympics.

HSBC Infrastructure Fund Management, which has been involved in private finance initiatives (PFI) and public-private partnerships (PPP) since its inception, is also a partner of the SSHC. Singapore-based United Premas, the largest player in the facilities management market in Southeast Asia will take a leading role in operations of the facilities. Global Spectrum Asia, a subsidiary of the US-based company which manages about 70 stadiums, arenas and public meeting venues in North America also forms part of the consortium.

The project has also enlisted the help of World Sport Group (WSG), the only major sports, media, marketing and event management company focused on and headquartered in Asia. At the forefront of sports development in Asia since 1993, WSG's achievements include the ASEAN Football Championships and the Barclay's Singapore Open, now the largest golf tournament in Asia. Meanwhile, Active Rights Management (ARM) will focus on developing and implementing sports programming at the Singapore complex. The company brings to the project its expertise in sports development, venue and event strategies, media and commercial programmes, and new initiatives involving technology.

Balakrishnan says the consortium's integrated approach to the various sports and commercial facilities surrounding the dome-shaped main stadium will create pedestrian traffic and promote vibrancy at the sports hub. Announcing SSHC as the preferred bidder, he said: “The strategy is supported by a comprehensive sporting calendar that guarantees at least 90 event days at the national stadium and 46 at the Singapore Indoor Stadium.”

Thinking long-term
Oon Jin Teik, chief executive of Singapore Sports Council, the agency tasked with developing the country's sporting infrastructure, told Host City that the sports hub plan is the result of over four years of planning and scoping studies. “It is part of the government's strategy to realise the benefits of sports for the nation. We are trying to build a sports culture,” he says. It's remarkable that no major sporting arenas, other than modestly-sized facilities for regional and grassroots sports, have been built in Singapore since the national stadium was erected in 1973. The current project will also be built to last. “This is our number one project because it's for the next two or three decades,” says Oon. “It's a milestone for the sporting scene in Singapore. We didn't have a big target like an Olympics in front of us, so it meant we had to create sustainable programming for the lifespan of the project.”

Oon hails the diverse mix of facilities and their flexibility and scalability for hosting events of all sizes, including the National Day Parade. “We almost have an ecosystem,” he says, noting the combination of sports and retail components, food and beverage outlets, offices and a hotel in the city centre plan.

Like other multipurpose sports complexes worldwide, the vision is of a sports hub teeming with visitors on event and non-event days. Its transport connections with Singapore's Mass Rapid Transit network and major expressways will aid these ambitions. Located next to the Marina Bay area, the site is only 15 minutes from Singapore Changi International airport, one of the busiest airports in the world. “Many stadiums in the world are bleeding money,” says Oon. With its various income streams, however, there is no danger of this happening at the Singapore Sports Hub, which promises to be “a very viable project”.

Financing the dream
The government examined various business models for international sports facilities and finally settled on the PPP financing concept. Fact-finding missions were made to explore the financing, design, operation and legacy planning of sports facilities around the world. These included trips to stadiums and arenas in Australia, Asia, North America and Europe, where Munich’s Allianz Arena and London’s O2 Arena and Wembley Stadium proved influential.

The government will pay a pre-agreed annual sum to the consortium. At present, the net value of total costs it will contribute over the 25-year tenure amounts to USD 1.36bn (GBP 678m). Oon admits he was initially very sceptical about the PPP model for such a complex project, but came round to the idea as he learned more about its benefits. “This form of outsourcing, including the private sector, was the best thing we did.”

The need for outsourcing stemmed from the fact that a gap has developed in Singapore's knowledge of, and experience in, planning, building and operating major sports facilities since the national stadium was built more than three decades ago. “Times have changed and the private sector has helped us move along,” Oon says.

Naming rights will not be sold for the national stadium but deals could be done for some of the other facilities.

Balakrishnan says the financing arrangement means the government is not liable for the capital expenditure. He believes the government investment is being well spent following the restructuring of Singapore's economy and society in recent years “to be ready for the globalised world and all its challenges”.

Hosting from grass roots
Government and sports leaders say the sports hub will play a pivotal role in accelerating development of the country's nascent sports industry, taking it to the next level. Balakrishnan says: “There is a clear consensus that sports, arts and culture are essential components of the nation's sophisticated service economy.” The sports hub will complement other building projects – including two new integrated resorts – as Singapore's transformation takes shape.

At the forefront of the project is an emphasis on practical value to the nation for the long term. When Balakrishnan named SSHC as the preferred bidder, he applauded the consortium's “holistic strategy to promote sports participation, leisure, entertainment and lifestyle activities via a focus on community and grassroots sports”.

World championships in various sports along with regional multi-sports events are also on the radar. Balakrishnan says: “Singapore will become a keynote in a global system where events are held; where you will participate and watch top international sporting events. People will come to Singapore and Singaporeans will also be able to find jobs and pursue their passions in sports”. Ng Ser Miang, IOC member from Singapore, tells Host City that the Asian Games and other major events are possible but rules out any future bid for an Olympics. “Considering the small population of Singapore, we believe that the Summer Games is not on the cards here. We do not have the population to support it or the facilities that need to be built and make viable after Games time.” Oon also acknowledges Singapore's limitations in bidding for an Olympics, adding: “The [2010] Youth Olympic Games bid fitted very nicely in our strategy. What we will go for has to make sense for us.”

To this end, the consortium ticked all the right boxes with its programming proposals to turn the sports hub into a vibrant year-round entertainment destination. Balakrishnan says: “Overall, we saw that the programme consisted of a very well-balanced mix of local, regional and international sporting events and across a wide spectrum of sports, which we believe would resonate with our people.”

Drawing the crowds
Promising 90 event days in the stadium is one thing, making it happen is quite another. Among SSHC's innovative proposals is the potential for playing host to a new ASEAN professional football league, other national level events such as concerts and an on-site media broadcast service.

The football league plan is part of a strategy “to look for some uniqueness” in event programming, says Oon. A Singapore national Games is also planned, along with international cricket matches, and tennis and badminton events. SSHC has set up a working committee to map out activities for the sports complex in greater detail.

The consortium is also establishing a Premier Park Foundation, which will reinvest a significant chunk of the sports hub's commercial revenues into financing future events, activities and facilities. With the expertise of Global Spectrum, a world leader in event programming and venue management, the goal is to achieve a sustainable model. Balakrishnan says: “The more activities there are, the more revenue that flows, the more revenue is then also available to invest in attracting and bringing other events and activities”.

With the 2011 opening date on the horizon, the project is on a tight timetable. Once the details of the SSHC contract have been signed, the consortium will take control of the site and operation of the indoor stadium from April. The existing national stadium will be pulled down to prepare for construction of the new mega-facility.

Balakrishnan sees a bright future ahead for the sports hub, saying the dome-shaped iconic stadium offers a “very good backdrop” for sports, lifestyle events, cultural and other mass events. “This will be a stage on which heroes can be created, memories generated, ties and allegiances formed,” he says.