Proportion of Contracts under $4 billion Air Navigation Upgrade Programme Expected to be Awarded to Local Companies
Ministry of TransportSpeakers
Summary
This question concerns local enterprise participation and capability development under the Civil Aviation Authority of Singapore's (CAAS) $4 billion air navigation upgrade programme. Ms Hazlina Abdul Halim asked about the proportion of contracts expected for local firms, avenues for small and medium enterprise (SME) participation, and plans to develop local capabilities to avoid over-reliance on overseas vendors. In response, Mr Jeffrey Siow stated that over 30 air navigation services systems will be upgraded or replaced over 15 years, with contracts awarded competitively based on Government procurement principles, including technical merit, safety, security, resilience, and value for money. Local companies and SMEs can participate as main contractors, in partnerships, or as specialist sub-contractors. To build local engineering resilience, CAAS will require key system vendors to partner local strategic suppliers for maintenance and will establish an Engineering Development Centre to facilitate technology transfer to local stakeholders.
Transcript
45 Ms Hazlina Abdul Halim asked the Minister for Transport (a) what proportion of contracts under CAAS's $4 billion air navigation upgrade programme is expected to be awarded to local companies; (b) how small and medium enterprises can participate in the programme; and (c) whether CAAS plans to develop local capabilities to maintain and upgrade critical systems and avoid long-term over-reliance on overseas vendors.
Mr Jeffrey Siow: The Civil Aviation Authority of Singapore (CAAS) will upgrade or replace over 30 air navigation services (ANS) systems over the next 15 years. These include the building of a new Singapore Air Traffic Control Centre complex as well as the upgrading of the Changi Control Tower. Contracts for all systems will be awarded competitively, in accordance with Government procurement principles, and based on considerations, such as technical merit, safety, security, operational resilience and value for money. Local companies, including small and medium enterprises, can participate in these projects as the main contractors, in partnership with main contractors or as specialist sub-contractors.
CAAS is committed to building local ANS engineering capabilities for resilience. For key ANS systems, CAAS will require vendors to partner local strategic suppliers in the maintenance and continuous upgrading of the systems. CAAS will also establish an Engineering Development Centre to facilitate knowledge and technology transfer from original equipment manufacturers to local stakeholders, including for high-impact system customisations required for Singapore's operating context.