Singapore to standardise 50% of terms in project finance documents, Latest Business News - The New Paper

Singapore to standardise 50% of terms in project finance documents

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Singapore aims to standardise 50 per cent of the terms in project finance documents in the coming year, said Minister in the Prime Minister's Office Indranee Rajah yesterday.

This is one effort to make infrastructure projects more bankable and investible - two key requirements to attract private sector capital.

Few governments have resources to fund projects fully, and developing Asia needs US$51 trillion (S$71 trillion) in infrastructure investment through 2040 to maintain its current growth momentum, said Ms Indranee, who was speaking at the two-day Asia Infrastructure Forum at Marina Bay Sands.

Infrastructure Asia, an organisation set up by Enterprise Singapore and the Monetary Authority of Singapore, is working with law firms to standardise clauses in project finance loan documents, to reduce time and cost and make processes more transparent.


The remaining 50 per cent of clauses will remain customisable according to individual project needs.

Ms Indranee, who is also Second Minister for Finance and Education, said: "We hope this will contribute to a more vibrant secondary market in infrastructure debt, and attract non-bank investors into this asset class."

The agency inked five pacts during the conference, including with Cambodia's Ministry of Economy and Finance on sewage and waste water treatment; with Indonesia's PT Sarana Multi Infrastruktur on capacity building; and with the Philippines PPP Centre to develop and implement projects.

It will also develop a regional capacity building programme with the World Bank Group, and collaborate with the Japan Overseas Infrastructure Investment Corporation for Transport and Urban Development on third-country projects in smart infrastructure. - THE STRAITS TIMES