NetLink NBN Management, the manager of NetLink NBN Trust, has appointed contractor Obayashi Singapore to build a new $10 million "central office" along Sembawang Road.
When ready in two years' time, this central office will be used as a facility to help support the provision of fibre-based connectivity services to future developments in the northern region of Singapore.
Netlink, which operates the island-wide fibre network, now runs 10 other central offices across Singapore.
The $120 million cost of the new central office includes the land premium and construction of its surrounding infrastructure, such as new ducts and manholes.
The total cost will reviewed by its regulator the Infocomm Media Development Authority for inclusion in Netlink’s regulatory asset base.
Netlink plans to fund the cost with internal financial resources and bank facilities, and will not have any "material impact" on its NTA and also its earnings per unit for the current year ending March 2023.