Question

Mr Leon Perera: To ask the Minister for Trade and Industry whether the Government will continue to encourage investment in the Amaravati city project following the change in the stance of the Government of India in respect of seeking funding for the project.

Oral Answer (to be attributed to Minister-in-charge of Trade Relations Mr S Iswaran)

1. In 2014, the then Government of Andhra Pradesh State sought Singapore’s assistance to masterplan its new state capital, Amaravati.  Subsequently, a consortium comprising Ascendas-Singbridge Pte Ltd (now part of CapitaLand Group) and Sembcorp Development Ltd was awarded through a Swiss Challenge process the opportunity to form a joint venture with an AP Government company to master-develop the capital using green and sustainable urban solutions in which Singapore companies have globally recognised expertise.  This collaboration is complemented by a G-to-G Memorandum of Understanding (MoU) between the Government of Singapore and the Government of AP on training and capacity building, which has been endorsed by the Government of India.   

2. The new State Government in AP that took office on 30 May 2019 is reviewing its plans for the capital city project, amidst its other priorities.  In July, the Government of India withdrew its request to the World Bank for a US$300 million loan for the project, and the Asian Infrastructure Investment Bank also subsequently withdrew a US$200 million loan.  The Singapore consortium companies are closely following these developments and evaluating the impact on the investment opportunity.