URA

MANAGEMENT DISCUSSION AND ANALYSIS 59 (V) Financial Resources, Liquidity and Commitments As at 31 March 2018, the URA’s net liquidity position, including the securities holdings, totaled $18,430 million. At the same date, the URA’s estimated outstanding commitments to the commenced projects, together with the construction cost on projects based on the valuation carried out by the URA’s in-house professionals, stood at $17,088 million. In addition to the US$1,000 million MTN Programme mentioned in paragraph II (c) above, the URA maintained $700 million in uncommitted bank facilities as at 31 March 2018. Securing the external funding and the credit facilities ensured the URA would have sufficient financial resources to carry out its urban renewal programme as planned. When imp l emen t i ng i t s u r ban renewa l programme, the URA is necessarily exposed to financial risks arising from property market fluctuations. Individual projects, with various development potentials, are tendered out at different times during property market cycles after the site clearance. Subject to the market conditions prevailing at the time of tender submission, the upfront payments may be higher or lower than the URA’s acquisition costs. As at 31 March 2018, the total costs of properties under development, excluding provision for impairment was $25,769 million. The URA estimates a total cash outlay of about $30,000 million, excluding operational overheads, will be required in the next five years to meet the costs of both its currently outstanding commitments and its forthcoming cash outlay for the implementation of the projects. This amount covers the URA’s work in redevelopment, rehabilitation, preservation and revitalisation. It should be noted that the expenditure may vary subject to the level of interest shown in the various initiatives, including the expanded programme of building rehabilitation and other additional initiatives. The URA continues to review its operating programme with the aim to maintain a highly prudent financial position with due regard for commercial principles in its operations so that the urban renewal programme may be sustainable in the long term.