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1. Flats plan for green sites

2. Contractors face lean year

3. Speech by FS at Hong Kong Institute of Architects Annual Awards

1. Flats plan for green sites
Staff reporter, The Standard 16 March 2004

The government plans to allow private developers to undertake limited development - including property projects - on land that has high conservation value.

In an exclusive interview with Sing Tao Daily, the sister paper of The Standard, Secretary for Environment, Transport and Works Sarah Liao said limited and carefully controlled property development can help generate income for environmental protection.

According to a consultation document issued by the bureau last year, there are 12 private tracts of land worth HK$20 billion in Hong Kong that are considered to have high conservation value, and on which the government has not allowed any development.

However, Liao said in future developers will be able to engage in limited development - including property development - on the lands to encourage them to spend money on conservation. ``Having property development means having money for conservation,'' she said.

Liao said the government wants developers to bear social responsibility for conservation.

She said several developers have shown interest in some of the sites.

One of the sites is the Sham Chung wetland, bordering the Sai Kung West Country Park, near Yung Shue O, which is understood to have been bought by Sun Hung Kai Properties several years ago. A spokesman for the company refused to comment yesterday on claims that it now wants to develop the land.

Liao said the development plan for Fung Lok Wai, an 860,000-square-foot site in Yuen Long, by Cheung Kong (Holdings) could be a blueprint of the new initiatives.

In 1999 the Town Planning Board approved a change in the site's use from agricultural purposes to multiple purposes and wetland.

The board also approved an application by Cheung Kong to develop a low-density luxury residential area with a plot ratio of 0.185 times. The project has a ground floor area of about 152,000 sq ft.

Under the plan, Cheung Kong will develop a wetland garden covering 810,000 sq ft.

It will also be able to build luxury flats on 5 per cent of the area.

Liao stressed the government will not approve projects without detailed planning.

``The developers must first enhance the ecological value of the lands before launching other projects,'' she said. ``Developers need to pay the price. All of them have to bear social responsibilities.''

If developers wanted to develop eco-tourism, Liao said the government could provide subsidies for management fees.

Developers could also invite ecological groups to assist as consultants. Green groups would be granted consultation fees to be used as research funds and be entitled to use sites as research bases.

She said the government could save money spent on conservation by inviting the participation of groups. Cheung Tin-fook, a villager of Sha Lo Tung - an area in Tai Po considered to have high conservation value - welcomed the government initiative.

He said developers had bought a large tract of land by the village about 20 years ago and wanted to develop it as a golf course, but the government and green groups had rejected the plan.

Cheung said the land had been left abandoned and had lost some of its ecological value in a recent fire.

He said the government should let private developers manage and develop such land while caring for the ecology, adding: ``We need someone to manage the land in order to protect it.''

However, Tai Po Environment Association consultant Tsim Siu-tai said Liao's idea might not be practical.

He said, under existing mechanisms, developers were required to obtain Town Planning Board approval for a change of land use, which could take several years.

He said not all conservation lands were suitable for property development.

Green Power division head Cheng Luk-ki said the government should enact laws regulating the performance of developers, who only cared about profits and lacked any long-term vision on environmental protection.

2. Contractors face lean year
Keith Wallis, The Standard 16 March 2004

Civil engineering and building contractors are set to see the value and number of new projects coming out to tender this year cut to almost unprecedented low levels.

One industry source commented: ``Contractors were beginning to see the green shoots of recovery amid more bullish sentiment about the state of the economy. But Financial Secretary Henry Tang has dashed those hopes. It's a disaster. Contractors were struggling before. Now things will only get worse.''

Another added: ``Some of the schemes mentioned in the budget estimates have already come out to tender. As a result, the amount of new work coming out to bid will be less than your figures suggest.''

Overall, the value of new projects planned to start in the next financial year is just HK$25.93 billion, compared with HK$60.75 billion in this financial year, HK$90 billion in 2002-2003 and HK$98 billion in 2001-2002.

Figures in the 2004-2005 budget estimates, published last week by the government, show the value of civil engineering projects, including roads and water schemes, has been slashed by about 40 per cent compared with this year.

Analysis of the results show work is due to start in the next financial year on 26 civil projects worth HK$19.02 billion.

By comparison, 27 infrastructure schemes valued at HK$34.96 billion were expected to start in the 2003-2004 year that ends this month.

The figures show there are only three mega-schemes, those worth more than HK$1 billion, starting from next month, compared with eight in the current year.

These comprise the HK$2.72 billion reconstruction and improvement of Tuen Mun Road, the HK$7.85 billion reconstruction of Sha Tin water treatment works and infrastructure development, valued at HK$3.97 billion, at the north apron of the former Kai Tak airport site.

Rebuilding Tuen Mun road and the north apron project were held over from this year.

Highways contractors are likely to face particularly tough times as the value of projects set to start in the next financial year has been cut to HK$4.72 billion, against schemes valued at HK$15.5 billion this year.

Projects starting this year included the HK$3.7 billion Shenzhen western corridor bridge, the HK$4.6 billion Deep Bay and the HK$979 million widening of Yuen Long highway.

Aside from the improvement of Tuen Mun highway, the largest schemes starting in the next year are the HK$821.02 million improvement of Castle Peak Road and the HK$523.7 million improvement of San Tin interchange. The Castle Peak Road scheme, between Ka Loon Tseung and Siu Lam, has just been awarded to Gammon Skanska under a HK$608 million contract.

Drainage contractors are among the few to benefit in the next financial year, after the budget figures show the number of new schemes planned to start after next month has risen to eight and are worth HK$1.87 billion. This compared with the six schemes valued at HK$1.08 billion that were due to begin this year.

Among the schemes set to start are HK$674 million worth of drainage improvements in northern New Territories, a HK$650 million project in east Kowloon and a HK$241.2 million sewerage scheme in Western, Central and Wan Chai.

Contractors specialising in building fare worse than those in the civil engineering sector after the budget figures show the value of new projects has been cut to just HK$6.7 billion, against HK$25.57 billion this year.

The largest building project set to start in the new financial year is the HK$664.2 million Applied Science and Technology Research Institute building.

Work is also due to begin on the construction of a HK$576.4 million infectious disease centre at Princess Margaret Hospital and a HK$496.68 million multimedia building at City University.

By comparison, the largest schemes set to start this year were the HK$6.4 billion government headquarters complex at the Tamar site, which was scrapped, and the HK$2.8 billion boundary crossing facilities at the Shenzhen western corridor.

The number of projects due to start has also been slashed by nearly half to 44, from 84 in 2003-2004. These include several rolled over from this year, including the HK$250.96 million renovation of libraries, the HK$166.5 million beautification of Tsim Sha Tsui promenade and the HK$106 million joint-user complex on Tseng Choi Street, Tuen Mun.

3. Speech by FS at Hong Kong Institute of Architects Annual Awards
Hong Kong Government, 15 March 2004

Following is a speech by the Financial Secretary, Mr Henry Tang, at the Prize Presentation and Exhibition Opening Ceremony of the Hong Kong Institute of Architects Annual Awards 2003 at the Pacific Place in Queensway this (March 15) evening (English only):

Mr [Edward] Shen, Distinguished Guests, Ladies and Gentlemen,

Good evening. It is my pleasure to join you tonight for the Prize Presentation and Exhibition Opening Ceremony of the Hong Kong Institute of Architects Annual Awards 2003. After talking so much about the Budget these past few days, it is indeed refreshing to devote an evening to honour a group of outstanding architects, who showcase Hong Kong's talent and creativity.

The architecture industry is a major pillar of Hong Kong's economy. Its incredible contributions have profoundly transformed our cityscape and skyline, which have long become a part of Hong Kong's identity. By just looking at the winners and nominees of this year's Awards, people would certainly be impressed by our world-class architectural projects.

The past few years have been challenging for Hong Kong, and more so for our architecture industry. Yet, we have once again demonstrated our resilience, our perseverance and our determination to succeed. The implementation of CEPA provides an added impetus to our budding economic recovery. For the architecture industry, Hong Kong companies are now able to provide architectural services in the Mainland, in the form of wholly owned operations. And just last month, the Agreement on Mutual Recognition of the Qualification of Architects was signed in Beijing, marking an important milestone of cooperation between the Mainland's and Hong Kong's professionals.

On the part of the Government, we would continue to invest in quality infrastructures that are necessary to our future economic growth. Over the next five years, Government's capital expenditure will amount to $43 billion a year on average, of which around $29 billion will be allocated to works projects. We are also exploring ways to expedite capital projects using Public Private Partnerships or Private Finance Initiatives. We believe that all these would give a boost to our building industry, including the architects and engineers at large.

I am pleased to note that the HKIA Annual Awards 2003 received a total of 58 highly deserving nominations. The winners have certainly demonstrated outstanding achievements in the field, and they stand as role models for others. May I offer my warmest congratulations to all of them.

Lastly, I would like to thank the Hong Kong Institute of Architects, not only for organizing these prestigious Awards, but also for its contributions in raising the standard of architecture in Hong Kong and advising the Government on industry-related issues. My best wishes to HKIA for every success in the years ahead. Thank you.