1 Cheung Kong subsidiary dealt blow over incinerator site plans
Cheung Chi-fai, SCMP 6 March 2008

A subsidiary of property giant Cheung Kong says its plans for a huge waste incinerator are in near-tatters after the government excluded its favoured site from the list of options.

Green Island Cement wants to build the incinerator, which would be capable of burning up to 6,000 tonnes of waste a day, at Tap Shek Kok in Tuen Mun, where it already has a cement plant.

But the Environmental Protection Department has identified Tsang Tsui, 5km north of Tap Shek Kok, and outlying island Shek Kwu Chau as  potential sites for an incinerator to take the pressure off the city's overflowing landfills.

Green Island said the recent  announcement of the sites took it by surprise as it was already negotiating with the department about building the waste-burning plant at Tap Shek Kok.

The company said that because of the existing infrastructure, it could build one there more quickly than elsewhere and at a cost of HK$40 billion, about half the government's estimate.

"We were told we are not part of the plan but no explanation was given," Green Island executive director Don Johnston said.

"It seems there are people who have difficulty in deciding to allow us to compete [with other bidders]," he said.

Mr Johnston said the company's proposal was for a plant that could handle 4,500 tonnes of waste, with the potential to expand to up to 6,000 tonnes. A demonstration project built in 2003 had been found to have low emission levels.

The government wants a plant able to burn at least 3,000 tonnes.

A government source said yesterday Green Island's proposal had not been ruled out but the company had yet to demonstrate its plan was substantially superior to the government's in all aspects.

"It seems that the company has assumed its proposal is mutually exclusive to ours and  requires an immediate resolution," the source said. "But at this stage, I don't see sufficient conditions to embrace it right now and shelve our original proposals."

The source added that Green Island's proposal would also mean an exclusive tender award, as the  incinerator would be attached to the company's cement factory, while the government planned to put the project out to open tender.

A spokesman for the Environmental Protection Department said the two sites were chosen on  stringent criteria and it would  welcome bids from any interested consortium for one of the sites for the project