A new Bill introduced on Mon will pave the way for the Government to pay for major national infrastructure projects through borrowing, something that has not been done since the 1990s. The proposed Significant Infrastructure Government Loan Act (Singa) will allow the Government to borrow up to $90 billion to pay for infrastructure that will last for at least 50 years. This means the cost will be spread out over many years, with each generation that benefits bearing part of it. First, only certain “nationally significant infrastructure” can be funded under the law. This is infrastructure that supports national productivity or Singapore’s economic, environmental or social sustainability. Examples include major highways, structures to supply, recover and treat water, and structures to mitigate risks from coastal hazards. It must be owned by the Government and be controlled by it, or on its behalf. Another criterion is that the expected cost of the infrastructure project should be at least $4 billion. Second, to avoid onerous financing costs for future generations, the Government can raise only up to $90 billion of loans in total.... Continue Reading