Singapore sets aside S$2.1 billion of green bond proceeds for electric rail expansion in FY2023
Photo: Construction of Pasir Ris MRT station on the Cross Island Line, which is expected to be completed by 2032 and is projected to be the longest fully underground line with over 50 km of train tracks. PHOTO: BT FILE
The funds will be used for building the Jurong Region Line and Cross Island Line
SINGAPORE has allocated about S$2.1 billion from its green bond proceeds to finance the expansion of its electric rail network – specifically the Jurong Region Line and Cross Island Line – in its 2023 fiscal year ending Mar 31, 2024.
About S$1.7 billion of this sum came from the sovereign issuer’s inaugural offer in August 2022, while another S$400 million was from the S$2.8 billion raised during the second tranche in August 2023, based on the Singapore Green Bond Report for FY2023 released on Wednesday (Sep 25).
With about 14 per cent of the second tranche already portioned out, the remaining sum of about S$2.4 billion is expected to be fully allocated to the two train lines by the end of FY2025, according to the report published by the Ministry of Finance (MOF).
The remaining proceeds have either been temporarily held in a separate cash account maintained with the Monetary Authority of Singapore (MAS) and ring-fenced for other eligible green expenditures, or invested by the Accountant-General’s Department in short-term liquidity instruments, in line with the Singapore green bond framework.
As for the first sovereign green bonds issuance, the total sum of S$2.4 billion raised has been fully allocated. In addition to the S$1.7 billion allocated in FY2023, S$700 million was used for the same purposes in the previous financial year.
The use of these proceeds for the construction of the Jurong Region Line and Cross Island Line was deemed to be eligible green expenditures for clean transportation, and was approved by the Green Bond Steering Committee, which was set up by MOF.
The Jurong Region Line is a 24-km train track that is expected to be completed in 2029, with 24 stations serving the western part of Singapore.
The Cross Island Line is expected to be completed by 2032, and is projected to be the longest fully underground line with over 50 km of train tracks cutting across Singapore when it becomes operational.
There has been debate over the alignment of the track, with nature groups raising concerns about how a particular stretch slated to be built across the Central Catchment Nature Reserve and MacRitchie Reservoir could potentially cause environmental damage.
Source: businesstimes.com.sg
