Rationale for Alternative Ownership Model for Changi Airport Terminal 5

Er Dr Lee Bee Wah asked the Minister for Transport (a) why is there a need for the Ministry to explore alternative ownership models for Changi Airport Terminal 5; (b) what are the lessons learnt from the private public partnership model of the Sports Hub; and (c) whether there is a planned solution should the selected ownership model not work well.

Mr Khaw Boon Wan: The development of Terminal 5 is a major investment to ensure that Changi Airport continues to remain competitive and serve Singapore's growing economic and connectivity needs. At full capacity, Terminal 5 will be as large as Terminals 1, 2 and 3 combined. Given the scale of investment needed, the Government set up the Changi Airport Development Fund to help fund the building of Terminal 5.

For Terminals 1-4, Singapore's sole airport operator Changi Airport Group (CAG) is also the owner. However, there are other leading airports where operation and ownership are separate. MOT and MOF have therefore commissioned a study to determine the ownership model for Terminal 5 following its completion that can best support our objective of maintaining Changi Airport's position as a leading air hub for the long term. We are not, however, considering a public-private partnership model of co-development.