It is our duty to use our resources as prudently and responsibly as possible. Our aim is to ensure this campus has the fiscal foundation to serve students for generations to come while simultaneously honoring the current needs of our students, faculty, and parents. SAS is in a strong financial position. The current reserves and our annual contribution to those reserves mean that the school has the ability to undertake a major campus upgrade without requiring any special tuition or fee increase.
In April 2021, the school board approved the taking out of a S$100 million 20-year loan, which the school has been able to obtain at very low interest rates. Construction costs have risen significantly in Singapore since the onset of COVID-19 as a result of a shortage of both skilled and general construction workers as well as increases in raw materials costs. We have sought to mitigate these cost increases through a highly competitive tender exercise, which resulted in a final contract price for the first phase of the project of $179.5m. This is about seven percent higher than our original budget (which did not include some new elements like the 50-meter pool). In light of these COVID-19-driven cost increases, we are increasing the total budget of the project from the originally projected $385 million to a projected $400-425 million.
With very large increases in our financial reserves over the last year as a result of favorable investment returns and the strong financial position of the school, this projected number is still well within our financial capability.
- In addition to Unrestricted Capital Reserves, we have additional reserves set aside equivalent to six months of operating expenses (approx. S$75mm)
- Assumes final cost of S$412.5 million, which is midpoint of S$400-$425 million budget
- Downside Case assumes major economic downturn with sharp drops in value of invested assets and in enrollment.
The new campus will bring to our students, faculty, and community members a variety of benefits across divisions.
In phase one, our elementary school will create spaces that will be flexible, responsive to student needs, and adaptable to innovations in education for decades to come.
With more learning space and stronger links to nature, the middle school will offer students more opportunities to create, connect, and explore.
With a forward-looking vision for our high school, the renovated spaces will enhance the student experience in a variety of ways.