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Sino-Singapore Tianjin Eco-City collateral fallout could be high in the Short Term
Published on: 2015-09-01
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Deadly explosions at a chemical warehouse in the northern port city of Tianjin earlier this month left behind a devastated industrial landscape and a murky tale of political malfeasance and corruption at the top.

The blasts, which killed 150 people, have also rattled a joint project between the Singapore and Chinese governments, 16km away.

The Sino-Singapore Tianjin Eco-City (SSTEC) escaped with only superficial damage to its buildings but observers say collateral fallout could be greater, at least in the short term.

Confidence in Tianjin's government and the reputation of the Binhai New Area, where the eco-city is located, has taken a hit amid fears that the air and water near the explosion site are now contaminated.

Against this backdrop, the eco-city must continue growing its population, attract investment and sell apartments as a model of sustainable development.

Begun in 2008, it is the second government-to-government flagship project after the Suzhou Industrial Park, which was started in 1994. It is home to some 30,000 residents, although when fully developed the city can accommodate 350,000 people.

"In the short term at least, there might be an impact on the eco-city because whatever affects the wider Tianjin economy has a knock-on effect on the SSTEC," said East Asian Institute analyst Chen Gang.

Already, Tianjin's mayor  has acknowledged it is unavoidable that some foreign companies might consider relocating, even though Tianjin's disruption is just temporary.

Some expatriates, fearing for their health, are also moving out from the Binhai area, including to Beijing, about an hour away by high-speed train.

But Mr Liew Choon Boon, chief executive officer of SSTEC Investment and Development, the city's master developer, says it's "business as usual".

Home sales and inquiries have returned to normal levels since the August 12th blasts, he said. According to data released by Tianjin authorities, the air and water quality in the eco-city is also safe, Mr Liew said.

"We are confident in the prospects and future development of the SSTEC... we will continue to work closely with the Singapore and Chinese governments to build on the good progress the eco-city has made over the past seven years," he added.

Experts say the long-term impact on Tianjin and the SSTEC will hinge on how the authorities handle the situation over the next few weeks. But it is likely to be more subdued as many accept the blast as a one-off accident.

It could even encourage future home buyers to choose the eco-city over other Binhai areas such as the more developed Tianjin Economic-Technological Development Area (Teda), which is closer to the blast site, some say.

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