The PAP government must learn to project more accurately the cost of projects.
In 2007, the LTA stated that MCE would be built by 2013, costing taxpayers $2.5 billion. link The MCE almost had to open in 2014 but the cost was way off the mark – taxpayers paid an additional $1,800,000,000!
The PAP government seems to have no control over the cost of any project.
The Circle Line had an initial estimated cost of $6.7 billion but the final price tag was an additional $3.3 billion. link Culprit – increased cost of materials.
The Downtown Line projected cost will eventually overshoot by about $8.7 billion. link Culprit – increased construction costs.
YOG initial budget skyrocketed from $104 million to $387 million link Culprit – minister who underestimated.
The worst was of course the $400,000 spent in renaming Marina Bay, Marina Bay. link This should have cost nothing. Culprit – none established so far but what do readers think? An idiot or someone with high IQ?
Our new national stadium was initially estimated to cost $800 million in 2005. This was increased by 50 per cent to $1.2 billion in 2007. link Presently, the estimate has again increased to $1.33 billion!
Cost overruns of millions and BILLIONS have become the norm but should not be acceptable. The common culprit in all cases appears to be our planners.
Perhaps all the other cost overruns had affected the MCYS budget which was a miserly $2.1 billion in 2012. (help schemes such as the WIS channels millions of dollars back into the CPF) Strangely when it comes to helping less fortunate Singaporeans, there has never been any budget overrun.