Singapore's transport ministry is evaluating options on funding for the Changi East development, which will include the country's largest terminal.
The Ministry of Transport tells FlightGlobal that the government is expecting to fund a large portion of the capital expenditure for the development, due to the "strategic importance" of the Changi air hub. The remaining costs will be shared by Changi Airport Group (CAG), aviation stakeholders, and passengers.
It has not disclosed the expected cost of the project, which will include the construction of Terminal 5, except to say that the amount will be significant and expected to cost "tens of billions".
"We are currently exploring various contribution options. We have studied the funding models of other countries' airports and consulted aviation stakeholders. We have not ruled out implementing a passenger fee, which Hong Kong and Dubai have done," says the transport ministry.
Singapore's airport developments, such as the construction of its recently opened Terminal 4, as well as the expansion of Terminal 1, were funded through aeronautical charges to CAG.
"Given the scale and size of the Changi East development, existing aeronautical charges, which are also used to fund operating costs for the existing terminals, will not generate sufficient revenue to cover the full development costs," the ministry explains.
Terminal 5, which will be operational in the 2020s, will double Changi's passenger capacity from the current 66 million to 135 million annually.
Source: Cirium Dashboard