LOANS (INTERNATIONAL BANK) (AMENDMENT) BILL

Order for Second Reading read.

3.41 p.m.

The Minister for Finance (Mr Hon Sui Sen): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

The Bill seeks to amend the Loans (International Bank) Ordinance, 1958, of Malaysia, which was extended to Singapore in 1964 when Singapore was part of Malaysia.

The present Ordinance enables the Government and statutory authorities to borrow from the International Bank for Reconstruction and Development, and also for the Government to guarantee loans made by the Bank to statutory authorities. The Ordinance also lays down the manner in which such loan and guarantee agreements may be concluded. The purpose of the Bill now before this House is to extend the provisions of the Ordinance to cover loans made by the Asian Development Bank to the Government and to statutory authorities in Singapore.

Members will recall that a number of loan agreements have recently been negotiated with the Asian Development Bank and, whilst the present constitutional and legislative powers of Government are sufficient to enable the signing of such loan agreements, the Asian Development Bank has requested that it be accorded the same status as the World Bank under the Loans (International Bank) Ordinance, 1958. This is felt to be justified in view of the significant assistance that is being accorded Singapore by the Asian Development Bank.

To date the Asian Development Bank has agreed to lend a sum of US$20.5 million to finance the expansion of Singapore International Airport. The Bank has also agreed to grant two further loans -~ one of US$3 million to the Government to finance the expansion of Ngee Ann Technical College, and the other of US$8.3 million to the Public Utilities Board, with the Government as guarantor, to finance the Kranji / Pandan Water Supply Project. The date for the coming into operation of the proposed amendment has been fixed at the 1st day of December, 1970, so as to cover the loan for the Singapore International Airport Expansion Project and the other two subsequent loans which I have mentioned. The amendment will also serve to provide a more satisfactory legal basis and machinery for future loans from the Asian Development Bank.

Mr Speaker, Sir, I beg to move.

Question put, and agreed to.

Bill accordingly read a Second time and committed to a Committee of the whole House.

The House immediately resolved itself into a Committee on the Bill. -[Mr Hon Sui Sen].

Bill considered in Committee.

[Mr Speaker in the Chair]

3.45 p.m.

Clause 1 -

The Chairman: The date of the citation title will be changed to "1971".

Clause 1 ordered to stand part of the Bill.

Clauses 2 to 4 inclusive ordered to stand part of the Bill.

Bill reported without amendment; read a Third time and passed.