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1. Experts to discuss delta bridge report

2. Dredging approval sought to accommodate return of QE2

3. Hopewell's hotel plans face further challenges

4. Call to speed up urban renewal

5. Developer calls for release of more sites

1. Experts to discuss delta bridge report
GARY CHEUNG, SCMP 4 October 2004

A series of hearings on the proposed bridge linking Hong Kong, Zhuhai and Macau has been scheduled for this month to canvass experts' views.

The South China Morning Post has learned that consultants from the China Highway Planning and Design Institute, under the Ministry of Communications, will organise two or three sessions with the experts to discuss the draft report of a feasibility study into the project. The experts will come from both the government and private sector. Apart from engineers, experts in fields including the environment and economics will be invited.

The hearings will be held in Beijing and probably in Hong Kong and Guangdong later this month.

The institute was commissioned to conduct the feasibility study into the bridge project.

A spokeswoman for the Environment, Transport and Works Bureau confirmed that the meetings would take place.

She said that in addition to the experts from Hong Kong, Macau, Beijing and Guangdong, officials from Hong Kong government departments were also expected to attend the hearings.

Sources close to the study said the draft report recommends a single Y-shaped bridge, with three possible routes listed for further deliberation by Guangdong and the two special administrative regions.

The first route reaches the coast of the mainland near the Gongbei land crossing, where it would split to provide separate access to Zhuhai and Macau, while the second lands at Hengqin Island, an outlying Zhuhai island west of Macau.

The last option lands at Macau, with a tunnel built underneath the Macau-Taipa bridge to reach the coast of Zhuhai. The institute will revise the draft after canvassing the views of experts. The study, focusing on the alignment and design of the bridge, is scheduled to be completed by the end of this year.

Zheng Tianxiang, a professor at the Centre for Studies of Hong Kong, Macau and the Pearl River Delta at Guangzhou-based Zhongshan University, said he expected the final report would not mention the so-called double-Y option, with an extension to Shenzhen.

In February, top officials in Guangdong and Shenzhen suggested the bridge would generate even greater economic benefits if it provided an extra link to Shenzhen.

The Hong Kong government, which has proposed starting the bridge at Sha Lo Wan or San Shek Wan in Lantau, favours a bridge landing at the Gongbei crossing while Zhuhai officials have said that they would prefer the bridge to extend to Hengqin Island.

A nine-member taskforce comprising representatives from Guangdong, Hong Kong and Macau was set up in August last year to oversee preparations for the construction of the cross-delta bridge. The taskforce, which commissioned the institute to carry out the feasibility study, held its last meeting in August.

The taskforce has set up 29 working groups on topics including financing, environmental protection, flow of traffic and tidal waves.

2. Dredging approval sought to accommodate return of QE2
CHEUNG CHI-FAI, SCMP 4 October 2004

Approval is being sought to dredge the seabed alongside the Ocean Terminal piers in Tsim Sha Tsui to prepare for the return of the cruise liner Queen Elizabeth 2 early next year.

The work would involve the removal of about 46,000 cubic metres of material, much of it contaminated mud containing heavy metals.

Terminal operators Harbour City Estates said the work was necessary to ensure a depth of 11 metres at Hong Kong's only cruise terminal for the liner, which has a draught of 9.7 metres.

The company has sought approval from the Environmental Protection Department for a permit to allow dredging work to start.

It said the 70,000-tonne QE2, operated by the Cunard Line, which also operates the world's newest and largest cruise liner the Queen Mary 2, would arrive in Hong Kong in early March.

The liner can accommodate about 1,900 passengers and 1,000 crew. It visited the city for three days in March this year when it docked at the Kwai Chung container port.

The terminal operator said an echo-sounding device had found excessive deposits of sediment with an average depth of 50cm in the proposed dredging area.

The mud would be dumped in seabed pits at a designated site at East Sha Chau, off the north of Lantau Island.

If approval is given, the work is expected to begin in November and be completed in January.

Harbour City Estates technical manager Ng Hok-shing said regular dredging was needed to maintain sufficient depth.

"We do it at regular intervals of four to five years and we do not find the deposition of sediment has been faster than we expected.

"We just want to be more cautious to prepare for the return of the liner and we want to make sure that all risks are ruled out," he said.

Mr Ng said the company wanted to make the berth deep enough for the QE2 and had no intention of digging deeper to accommodate larger ships.

Because of the limitations of the terminal, which opened in 1966, the government is seeking sites to build a new cruise terminal to accommodate larger vessels. Sites being considered include the old Kai Tak airport. Li Ka-shing has also proposed one in Hunghom.

3. Hopewell's hotel plans face further challenges
CHLOE LAI, SCMP 4 October 2004

Business tycoon Sir Gordon Wu Ying-sheung is likely to have to further change his controversial Mega Tower hotel project as a result of requests to amend the plans.

Two different parties have filed requests before the Town Planning Board seeking to protect government land within the project site.

The board's decision may have a significant impact because half of the proposed project is on government land.

If approved, it will force Sir Gordon's Hopewell Holdings to amend the architecture of what could be the city's biggest hotel project.

The first rezoning request was filed by a Kennedy Road resident, who wants the area to be an open space.

The Conservancy Association filed another request two weeks ago to designate the government land as greenbelt. The request will be studied in three months time.

Hopewell Holdings plans to build two 68-storey hotel towers near Hopewell Centre. But the plan is unpopular with Wan Chai residents and green groups.

The board rejected Sir Gordon's proposal in May but changed its mind two months later after hearing the tycoon's defence.

It decided to defer making a decision and concluded Sir Gordon could go ahead with the project if he improved the design and proved the towers would not cause traffic congestion.

Hopewell subsequently sent the board two amendment options in late August, which it presented to the public at a Wan Chai District Council meeting last month.

Hopewell will offer more public amenities such as "sky" gardens on elevated levels and two pedestrian footbridges. It will increase the space between the two L-shaped towers to address concerns about the "wall effect" on views.

The board is scheduled to study the two amended options at the end of this month.

A Planning Department spokesman said the Kennedy Road resident had asked the board to keep the Ship Street and Kennedy Road junction an open space.

He said the areas involved overlaps with part of the Mega Tower hotel, so if the board approved this request, Hopewell would have to amend the plan again.

Even if the board rejected the resident's request, the Conservancy Association's pending request may also affect Hopewell's amendments.

The Planning Department will remind board members that another rezoning request is coming when they discuss the Mega Tower amendments.

The Conservancy Association said it respected the legal entitlements and development rights of the landowner.

But it said: "The massive wall effect of the Mega Tower project violates all the principles of urban design. It is detrimental and particularly destructive to the character of old Wan Chai that surrounds it."

4. Call to speed up urban renewal
NG KANG-CHUNG, SCMP 4 October 2004

The government has been urged to speed up the redevelopment of slum areas as developers show fresh interest in urban renewal projects.

Pang Shiu-kee, head of property consultants S.K. Pang Surveyors, said the Urban Renewal Authority (URA) should take advantage of the growing interest from the private sector by speeding up the gentrification of older areas.

"The whole society will benefit from it," Mr Pang said.

He said a faster pace of redevelopment would also improve the authority's financial health.

Housing lobby group the Society for Community Organisation also called on the government to accelerate efforts to clear urban slums.

Veteran housing affairs observer Ho Hei-wah, the director of the society, said: "The property market seems to be picking up. The government should not miss this opportunity."

A URA board member also proposed that its role be expanded to redevelop slums in the suburbs.

Private developers have shown interest in the five authority projects this year, unlike during the era of the Land Development Corporation when many projects were dropped through lack of private-sector support.

Hong Kong Institute of Surveyors council member Bernard Chan said: "The market is picking up. With a shortage of urban land, it is only natural private developers would like to turn to the authority projects.

"The projects on offer by the authority this year are relatively smaller and this also attracted smaller developers. And, more importantly, many of the sites are in good urban locations."

However, the projects are not only attracting small players.

The latest authority project in Shamshuipo attracted 13 bids from developers, including Sun Hung Kai Properties, Cheung Kong (Holdings), New World Development and Sino Land.

Sun Hung Kai Properties won the contract.

URA board member Francis Chau attributed the good response to the authority's improved compensation scheme.

"Our compensation package has been more reasonable. It might be a good time for us to review our work. I am not suggesting that we should be too ambitious, but we should consider extending our work to other suburban areas such as Sheung Shui or Sha Tin," Mr Chau said.

The society's Mr Ho said: "One major difficulty of the authority is it lacks funding. The government may consider pumping more money in the authority."

The URA was set up in 2001 to replace the Land Development Corporation.

It was tasked to complete 200 new projects and 25 left over by the Land Development Corporation within 20 years.

So far, 17 projects have been launched since it took over.

According to the URA, affected owners will be paid sufficient compensation to be able to buy a comparable flat of about seven years old in an area nearby, on top of other allowances.

Market observers said the quicker land resumption process had also helped boost private sector interest.

Unlike during the days of the Land Development Corporation, private developers under the URA do not need to worry about land resumption. It usually takes the authority about two years to complete land assembly for a project, after which it will tender the project to private developers.

Lau Wah-sum, former chairman of the Land Development Corporation, said the change in land resumption methods had reduced the investment risk for developers. As a result, they were showing greater interest in urban renewal projects.

One case handled years ago by the Land Development Corporation was the Mongkok Seven Streets redevelopment, now Langham Place.

The developer Great Eagle (Holdings) spent 15 years and $10.5 billion to complete the project, partly because the process of land resumption was so slow.

Mr Lau said the development skills of property companies had improved in recent years.

They could turn a small site into an attractive residential project with better designs that enhanced the project's marketability, he said.

However, some market watchers warned that the authority's generous compensation packages could end up becoming a burden.

Centaline Group chairman Shih Wing-ching warned the authority against offering compensation that was too generous.

"Under this situation, the authority, of course, can speed up its projects," he said.

"But speeding up projects also means more residents will be affected and therefore [there will be] more compensation claims.

"If the authority does not review its compensation packages, it will one day find it impossible to sustain."

Leo Law, a senior external affairs manager at the URA, said it was too early to say if urban renewal projects should be accelerated, and the authority would announce more sites for redevelopment later in the year.

5. Developer calls for release of more sites
Grace Lam in Shanghai, The Standard 4 October 2004

Mid-sized developer Chinese Estates Holdings said the government should put another 20 to 30 pieces of land on the land application list.

Executive director Joseph Lau said there were only a few good sites left on the list, and the government should add more luxury or mid-range residential sites to it.

"After the two residential plots [in Ho Man Tin and San Po Kong] were triggered for land auction, there was no other attractive big site on the list, except for the one on Sugar Street,'' Lau said.

He said Chinese Estates' land bank would only provide sufficient reserves until 2007-8 and it was interested in any site that could generate good profit.

Lau said the company was keen to bid for more land but it wasn't prepared to pay high prices if it couldn't get a reasonable profit in return.

"Given that land prices are so high at present, I just don't know how to calculate which piece of land is worth developing and which is not,'' he said.

While rival developers have criticised the "too high'' minimum bids being asked by the government, Lau declined to enter the debate but said had his company not paid all premiums for land conversion two years ago, it would now have to pay double the amount.

Director of Lands Patrick Lau said on Saturday the government has no plan to add more sites to the application list.

Meanwhile, Lau said he would sell four detached houses at 31 Barker Road, the Peak, which he agreed last month to buy from Chinese Estates Holdings for HK$380 million.

The connected transaction is awaiting approval from shareholders at a special general meeting this month.

The sale agreement includes a profit-sharing clause that stipulates if Lau sells the houses within two years of purchase, he must give 80 per cent of the profit to Chinese Estates Holdings.

Lau took a swipe at earlier press reports which claimed he would take advantage of the company and sell the properties as soon as he could after the two-year period to pocket profits.

He revealed that Chinese Estates had originally planned to sell the houses earlier this year, but the idea was shelved due to a slowdown in the number of transactions of high-end properties in the past few months.

Lau added that the disposal would be beneficial to the company, as it could free up additional resources and increase its working capital while allowing it to invest in higher yielding property development projects and participating in upcoming land auctions. It would also be able to repay bank loans.

Lau said the company would consider buying back its shares in future if the price fell to a low level or if it offered an attractive premium.

The company would maintain a dividend payout ratio of at least 30 per cent and it has no plan to carry out any fund raising exercise, he said.

grace.lam@globalchina.com