An initial amount of $5b will be put in to the fund.
The Government will set up a new Rail Infrastructure Fund this year to prepare for major rail lines projects in the future.
The Rail Infrastructure Fund is in line with the government’s efforts to boost infrastructure projects. It is similar to the Changi Airport Development Fund that was set up in 2015 for the construction of Changi T5. The latter now has $4b fund.
“For our infrastructure investments, the key challenge is that certain expenditures can be very lumpy, with hefty upfront investments,” said Finance Minister Heng Swee Keat at the 2018 budget announcement. “We will save ahead in preparation for these lumpy investments. This will help reduce the burden in future years.”
Meanwhile, the government is also considering to provide guarantees for-long term borrowings made by Statutory boards and government owned-companies to fund national infrastructure projects. Borrowings could help spread the cost of large investments over the years and boost the local bond market, Heng added.
The Land Transport Authority earlier noted that expansion of rail and public bus networks could generate 8,000 new public transport jobs by 2030.
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