Stakeholder issues at the Singapore Sports Hub
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Abstract
Nathaniel Chan, Senior Asia-Pacific Consultant at Greenrock Infrastructure Advisory, was assessing the situation faced by the private consortium Sports Hub Pte Ltd (SHPL) at the Singapore Sports Hub. The S$1.33 billion (US$0.99 billion) facility had been built under a public-private partnership (PPP) between Sport Singapore and SHPL. The consortium had a concession contract to build and operate the hub in exchange for availability payments over a 25-year period.
However, the relationship became strained as the government criticised the consortium for not meeting the standards required for a world-class stadium. There were also complaints from potential clients that the charges for using the hub were too high and the consortium had failed to organise community events. Internally, the consortium had to deal with multiple resignations amid rumours that an existing equity partner would pull out of the consortium.
Chan represented clients who were interested in doing business with the Sports Hub. How could Chan determine if these problems were long-term, or just teething issues due to the scale and complexity of the project? How could Chan advise the consortium to improve its stakeholder relationships?