Despite being partially funded by the Singapore government, the Singapore Sports Hub is demanding S$10 million (a revised figure from the original S$26 million quote) for an extra 35 days in preparation for the yearly National Day Parade. Under the public-private partnership contract (PPP), the Singapore government gets 45 days of free usage for the National Day Parade.
It is also understood the Sports Hub is paid an undisclosed monthly unitary sum by the Singapore government. According to Singapore Budget 2014 figures [Link], the 25-year-contract unitary payment varies year to year and quoting the Ministry of Culture, Community and Youth:
“The provision of $1.28 billion for FY2014 operating expenditure is an increase of $267.13 million or 26.3% over the revised FY2013 expenditure. Most of the increase arises from provisions for Sports Hub unitary payments and for the programmes and initiatives under the Arts and Culture Strategic Review (ACSR).”
This incident highlighted the wastage of a poor estimation by the Singapore government as an extra 35 days is nowhere near the agreed contracted 45 days for the NDP, which has been a yearly affair since 1966. The PPP also exposed the exploitative nature of private monopolies to over-quote government contracts, resulting in more wastage and defeating the purpose of the PPP to manage costs for infrastructural investments.
In essence, the Sports Hub is publicly-funded for its construction and maintenance, yet it’s profits are privately-held like SMRT and SBS Transit.