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  Straits Times 4 Feb 07
Govt to share extra cost
Builders hit by rising sand prices
It will share up to 75% of the extra cost for existing public building contracts
By Melissa Sim

Channel NewsAsia 3 Feb 07
S'pore can cope with sand ban in the long term as well
By Farah Abdul Rahim

SINGAPORE: Singapore will be able to cope with the sand ban, not just in the short term, but also in the medium and long term. That is the reassurance by National Development Minister Mah Bow Tan, who was speaking on the issue for the first time on Saturday.

He also said that the government plans to co-share up to 75 percent of the increase in the cost of sand with contractors on current government projects, in a one-off measure to help them tide over the disruption.

Mr Mah said it is fair for all parties to share the additional costs. "We will take each particular contract and look at the additional costs involved and then work out a kind of co-sharing. We will share a significant part of the costs, based on where the burden falls. I expect all public sector agencies will negotiate with their contractors and I also expect the developers in the private sector to do likewise," said the National Development Minister.

Mr Mah remained tight-lipped on how much this move will cost the government, as this would vary on a project-to-project basis.

He said: "We are prepared to share a significant amount, a significant part of the costs. It can go up to as high as 75 percent, if necessary, but it all depends on each particular project, each particular contract.

"As I said, this is a one-off measure; it's a measure we believe will help all parties. Each party shares the burden fairly and in this way, we can overcome this temporary disruption and we can move on."

The building of major projects such as the integrated resorts will continue on schedule, with minimal impact.

Looking ahead, Mr Mah also said more needs to be done for the medium and long term. He added that Singapore has already received two shipments of sand this week, after the ban.

But there is still a need for the industry to look at exploring alternative methods and construction materials to reduce the demand for sand. - CNA/so

Straits Times 4 Feb 07
Govt to share extra cost
Builders hit by rising sand prices
It will share up to 75% of the extra cost for existing public building contracts
By Melissa Sim

CONTRACTORS worried about the rising price of sand were assured yesterday that the Government will share their burden on existing public building contracts.

Industry players expect a spike in sand prices to above $50 per tonne from $20 per tonne about two weeks ago after Indonesia announced an immediate ban on the sale of sand to Singapore.

Minister for National Development Mah Bow Tan said the Government is prepared to share up to 75 per cent of the additional cost and hoped that private developers will do the same.

He said: 'Bearing in mind that this is a very sudden disruption, we think it's only fair that all the parties involved share in the additional cost. 'By that, I mean not just the concrete manufacturers but also the contractors and, ultimately, the developers.'

Speaking to reporters yesterday at the Tampines Town Hall Forum, Mr Mah said the proportion shouldered by the Government would vary with each project, depending on what stage it is at and the terms of the contract.

He emphasised that this would only be a one-off measure for existing contracts. Future contracts would have to factor in the additional cost.

Indonesia said its ban on sand was to prevent further damage to its environment and protect its borders.

The move stunned the building industry here which is anticipating $19 billion worth of contracts this year, the highest since 1997. Singapore's construction industry has imported about six to eight million tonnes of sand a year, almost all of it from Indonesia since 1997, when Malaysia banned exports to the Republic.

Yesterday, the Indonesian government announced that it would beef up security between Indonesia and Singapore to enforce the ban. It ordered security personnel to be on high alert and said it would take strong action against those smuggling Indonesian sand overseas.

Singapore started releasing sand from its stockpile on Thursday, which Mr Mah said would be 'enough for us'. He has provided assurance that supplies are coming in from regional countries, but did not specify which ones.

'I think in the last two days, we've already had two shipments coming in and the flow is coming in regularly from now,' he said. The need for the industry to look at exploring alternative methods and construction materials to reduce the demand for sand remained, he said.
links
Sandy Situation a huge pile of articles about sand, reclamation and Singapore on the leafmonkey blog; also on the environmental news blog

Related articles on Singapore: general environmental issues and wild shores
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