Singapore
government decision to lead construction of a new capital city in Andhra
Pradesh is testament to its pioneering approach to business
Andhra
Pradesh, India, was split earlier this year and will lose its current capital
Hyderabad to the new state of Telangana. Photograph: STR/EPA
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South-east Asia has an invigorating buzz about it.
Economies are growing quickly, and Singapore was recently ranked as the best place in the world to do business.
The UK comes in at number 21, below Malaysia, Austria and France.
The
go-getting entrepreneurialism of Singapore has led its government to agree to
support the Indian state Andhra Pradesh in building a new capital city. It will
be a stupendous 7,235 square kilometres, 10 times the size of Singapore’s own
716 square kilometres. The new city is expected to cost £10.7bn ($16.5bn).
Andhra
Pradesh was formally split in two in
June 2014 and will lose its current capital Hyderabad to the new state of
Telangana. Singapore signed an agreement with the Andhra Pradesh government in
December to prepare the master plan and develop the new city. This plan should
be finished within six months, and the first phase of construction, which
includes government, commercial and residential buildings, should be completed
within five years. Singapore companies will build the utilities, and the
Singapore-based and government-funded Centre for Liveable Cities will
train officials of the state government, sharing its knowledge on liveable and
sustainable cities.
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leaders, offering news, commentary and access to a range of perspectives and
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The
new city is likely to have an IT focus. The Andhra Pradesh chief minister Nara
Chandrababu Naidu put Hyderabad on the global IT map, inviting software
companies such as Microsoft to set up development facilities.
There
will be many challenges to creating a new city, not least the threat of
corruption. Singapore is one of the world’s least corrupt countries, seventh in
the international league table produced by Transparency International.
India, by contrast, is one of the more corrupt countries, coming in at number 85.
The UK is in 14th place.
The
problem with corruption is often not so much the amount of money that changes
hands corruptly, but that inexperienced contractors may win business at the
expense of capable ones. They may also be allowed to produce sub-standard work,
cut back on health and safety and delay completion. This is particularly
prevalent in the construction industry: road surfaces break up prematurely,
bridges collapse and lives are lost. These issues often occur when contractors
fraudulently take advantage of inadequate contracts management. Were such
problems to occur in Andhra Pradesh, it would not only be an enormous setback
to construction plans, but would do collateral damage to Singapore’s
reputation.
Success
will therefore require excellent project and programme management, contracting
and contracts management and a resilient anti-fraud and corruption plan. The
procurement and contracting team must be independent from the operational
teams, and have its own reporting lines both to the programme manager and a
very competent board. A strong, independent audit team is a must.
This
project does carry some risks for Singapore. However, in undertaking the
project, Singapore shows
a focus and vision which is arguably unmatched in developed countries. It has
built a powerful economy despite having virtually no natural resources.
Successful delivery of such a major project in India should further strengthen
its brand and reputation as a global business leader.
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