ST LETTER : Cost cap on lift upgrading

Nov 22, 2009

YOUR LETTERS

Cost cap on lift upgrading

I refer to the letter by Mr Michael Yeo, 'Upgrade lifts in ineligible blocks too' (Nov 8).

The Government has set a cost cap of $30,000 for each benefiting unit as an eligibility criterion for the Lift Upgrading Programme (LUP).� The purpose of the cost cap is to maximise the use of the LUP budget, to allow as many residents as possible to benefit from the programme.

This cost cap is necessary because the cost of lift upgrading can be very high, and it is not realistic to provide lift upgrading at any cost. In some cases, the cost can even exceed $100,000 per benefiting unit, or a substantial proportion of the value of the flat.

When the LUP was first introduced in 2001, about 1,000 blocks exceeded the LUP cost cap and were not eligible for the programme. Over the years, HDB has introduced innovative and cost-effective lift solutions so that more blocks can be eligible for LUP.

Today, we have reduced the number of ineligible blocks to just over 200. The HDB will continue to actively explore alternative cost-effective solutions so that more blocks can become eligible for LUP.

HDB is mindful of the need to keep the cost of LUP low so that more lifts can qualify for the programme.

We have reduced the extent of finishes at lift lobbies. We have also made use of bulk procurement arrangements to procure lifts and building contracts to reap economies of scale.

Chee Kheng Chye
Deputy director (Upgrading Programmes Management)
Housing & Development Board