The Singapore Tourism Board has announced that it has secured funding for its own version of the London Eye and that construction is set to begin shortly.

Peter Purcell, managing director of Singapore Flyer Pte, said that the S$240m (£80m, 119m euro, US$142m) project would be funded by German banks Delbruek Bethmann Maffei/ABN AMRO and Bayerische Hypo-und Vereinsbank AG.

The 170m high Singapore Flyer will be located in the city’s Marina Bay, which is set to become the future ‘downtown’ of Singapore, featuring a business and financial centre, an integrated resort and recreational and entertainment facilities. The observation wheel is scheduled for completion in 2008.

“I am delighted the Singapore Flyer project can now proceed as planned,” said Purcell.

“When completed, the Singapore Flyer will potentially be one of Asia’s most exciting and highly visible visitor attractions.

“Not only have the German bankers recognised this potential, they have also given a resounding vote of confidence to Singapore’s tourism investment potential.”

From the highest point of the attraction, visitors will be able to see for 45km and across three countries: Singapore, Malaysia and Indonesia. It is expected to attract around 2.5million visitors in the first year, with more than 50 per cent from overseas.

Singapore Tourism Board aims to triple tourism spend in the region to S$30bn (£10bn, 15bn euro, US$18bn) and double visitor arrivals to 17million by 2015.