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1.
Bidders in move to increase flats at
cultural hub
2.
Construction industry output drops
7pc
3.
$19b bill to make harbour clean enough
for a swim
4.
KCRC’s property projects
1. Bidders in move to increase flats at cultural hub
Raymond
Wang, The Standard 22 June 2004
Two
bidders for the controversial West Kowloon cultural hub project
have proposed an increase in the number of flats on the site.
The
Sunny Development consortium and Henderson Land Development want
to increase their plot ratios at the proposed project, which involves
an investment of up to HK$30 billion.
To
maximise residential property potential and reduce investment risk
at the 40-hectare site, Sunny Development, which includes Sino Land,
Wharf (Holdings), Chinese Estates Holdings and KWah International
Holdings, has proposed a plot ratio of more than 3.3 times.
Henderson
vice-chairman Colin Lam said yesterday it has proposed a plot ratio
of about 2.5 times, comprising 1.7 for property development and
0.8 for the cultural aspect.
The
plot ratio, which stands at 1.81 times, determines the number of
flats and floor area of the cultural component at the site. But
the government has said the ratio can be adjusted.
Under
Henderson's proposal as the World City Cultural Park, the cultural,
commercial and residential portions will each account for one-third.
Henderson
chairman Lee Shau-kee said: ``We have financial strength and so
decided to submit a solo bid with investment costs as much as HK$30
billion.''
He
said investment costs will be spread over several years, with around
HK$3 billion to HK$5 billion expected to be injected each year.
``As
a company posting several billion dollars in net profit each year,
the amount is acceptable.''
Apart
from Henderson, Swire Properties, and a company called Lam Sze-tat,
have submitted sole tenders for the mega project.
Cheung
Kong (Holdings) and Sun Hung Kai Properties have bid through a 50-50
joint venture, Dynamic Star International.
Separately,
Henderson chief Lee played down the government's decision to raise
its supply forecast of new flats in 2007 from 7,000 to 11,000. He
said the mild increase was unlikely to have an effect on the property
market.
Furthermore,
Lee said plans by the Kowloon-Canton Railway Corp (KCRC) to release
13,600 new flats for sale in the New Territories by 2008 would also
not dent the market because they would be rolled out in the next
four years. New World Development chairman Cheng Yu-tung agreed
it was right for the KCRC to relaunch projects following a tender
suspension over the past two years, adding its decision will not
have an undue influence on the homes market.
However,
Real Estate Developers' Association president Stanley Ho admits
he is worried by the KCRC move.
"The
supply volume at present is acceptable but oversupply may dampen
the market,'' he said.
Also
yesterday, MTR Corp chairman Raymond Ch'ien said the launch of the
Tseung Kwan O Area 86 project was still on, with the first batch
of flats expected to be completed in 2007.
2. Construction industry output drops 7pc
Danny
Chung, The Standard 22 June 2004
Despite
figures indicating an improvement in the economy, latest government
statistics show total output in the construction industry dropped
7 per cent in the first quarter to HK$23 billion compared with a
year earlier.
Continuing
a general southward trend, the total value of work in the private
sector fell 25.4 per cent to HK$6.9 billion following ``the completion
of work at some large residential and commercial building sites'',
the Census and Statistics Department said.
With
the private sector still in the doldrums, public sector output remained
strong at HK$7.5 billion, a slight 1.6 per cent fall year on year.
Current
infrastructure projects include the Deep Bay highway, the Hong Kong-Shenzhen
Western Corridor and railway work. Minor construction, renovation
and electrical work continued the trend that started last year,
posting a 9.4 per cent rise in output in the first three months
to HK$8.6 billion.
Analysed
by end user, residential building still accounted for the largest
slice of construction although output fell 26.4 per cent to HK$5.5
billion compared with a year ago.
In
second place was transport projects which saw a modest 1.8 per cent
decline in output to HK$3 billion, while there was a 12.2 per cent
gain in the value of industrial and storage projects to HK$2.5 billion.
Further
figures provided by the department show continued bad prospects
for foundation specialists with a 45.5 per cent drop to HK$672 million
in output for site formation and piling works in the first quarter.
3. $19b bill to make harbour clean enough for a swim
CHEUNG
CHI-FAI, SCMP 22 June 2004
The government yesterday unveiled a $19.5 billion proposal to clean
up Victoria Harbour, hoping it can help reopen beaches closed by
pollution and resume cross-harbour swimming.
But
the public is expected to face increases in their sewage disposal
fees ranging from $2 to $12 a month, a source said.
Subsidies
cover more than half the cost of cleaning up sewage pumped into
the harbour, with charges to water users averaging about $12 a month.
The
level of subsidies has not changed for years, and was not reviewed
even after phase one of the Harbour Area Treatment Scheme - under
which 75 per cent of sewage from Hong Kong Island is treated at
a Stonecutters Island plant - started operating in 2001.
Under
the phased proposal outlined yesterday, the remaining 25 per cent
of barely treated sewage from Hong Kong Island will be collected
and pumped to the Stonecutters facility, which will be expanded
by 2014. Construction costs would be $8.4 billion, and annual operating
costs $440 million.
Upon
completion, water quality in the harbour would exceed the objective
set by the Environmental Protection Department, allowing the resumption
of cross-harbour swimming, suspended since 1978, officials said.
By
2009, all treated sewage would also be disinfected to remove excessive
bacteria. The government believes this could allow the reopening
of four polluted beaches in Tsuen Wan.
The
government also proposes spending $11.1 billion to build an extra
biological treatment facility to remove excessive organic matter.
The plant would have annual operating costs of $720 million.
Secretary
for Environment, Transport and Works Sarah Liao Sau-tung launched
a four-month consultation exercise on the proposal yesterday. She
would not be drawn on the possibility of higher sewerage charges.
The public would be consulted separately on the matter at a later
date, she said.
Dr
Liao said the priority now was to obtain a consensus for the proposal
and implement it as quickly as possible.
Catering-trade
legislator Tommy Cheung Yu-yan, a persistent critic of the scheme,
said his constituents would oppose the idea unless it was made clear
how much of the cost they would have to bear.
Environmentalists
welcomed the proposal, but called on the government to go ahead
immediately with biological treatment of sewage. Ho Kin-chung, a
marine expert at the Open University, also called for immediate
improvements to treatment.
Mei
Ng Fong Siu-mei, director of Friends of the Earth, said the money
was worth spending.
Meanwhile,
Greenpeace campaigner Kevin May warned: "The positive impact
from the proposal will be offset if cross-border water pollution
is to worsen."
4. KCRC’s property projects
KCRC
Press Release, 22 June 2004
With
regard to the schedule for the development of the property projects
along the West Rail and Ma On Shan Rail alignments, the Kowloon-Canton
Railway Corporation (KCRC) said that the Corporation had submitted
the proposals to the Government. The Corporation is co-ordinating
with the Government and awaiting its final approval of the proposals.
All along KCRC has been, and will continue to be, supportive of
the Government policy and shares the common goal for a co-ordinated
plan for property developments. KCRC believes that the projects
concerned should not create any negative impact on the local property
market.
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