May 10

Hopes are rapidly fading that an agreement will be reached in time for Singapore to host a Formula One Grand Prix in 2008, a report said Thursday, citing sources familiar with negotiations.

The city-state is keen to host a street race and the government has given its blessing pending ongoing negotiations between local business tycoon Ong Beng Seng and F1 boss Bernie Ecclestone.

But the Straits Times said financial and logistical hurdles have slowed progress on a deal.

"He (Ong) wants the government to foot a large part of the bill, but the government thinks that is unwise," a source familiar with the negotiations told the paper.

The government said it was "willing to support such a venture up to a level commensurate with the broader benefits to the economy."

The cost of hosting a race, which has been tipped to be the sport's first night race, is estimated to be 70 million US dollars.

Aside from the costs, the paper said the task of working out logistics, particularly maximising public safety and minimising disruptions to local businesses in the area earmarked for the race, was proving to be a nightmare.

It said roads would have to be widened, kerbs remodelled and crash barriers erected.

However, lighting was the main challenge as Formula One has no standards for this, having never before hosted a night race.

A senior member of Ong's team has previously said a decision needed to be made by April this year if they were to be ready for a 2008 race.