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1. Construction Output for the Third Quarter of 2004

2. Draft Pak Kong and Sha Kok Mei Outline Zoning Plan approved

3. Draft Shap Sz Heung Outline Zoning Plan approved

4. Approved Kam Tin North Outline Zoning Plan amended

5. Shui On Construction posts $392 million profit

6. Cultural hub rivals back financial disclosure

1. Construction Output for the Third Quarter of 2004
Hong Kong Government, 17 December 2004

The total gross value of construction work performed by main contractors decreased by 6.9% in nominal terms from a year earlier to $23.1 billion in the third quarter of 2004, according to the preliminary results of the Quarterly Survey of Construction Output released today (December 17) by the Census and Statistics Department (C&SD).

2. After discounting price change, the total gross value of construction work performed by main contractors decreased by 6.4% in real terms over the same period.

3. Gross value of construction work in real terms is derived by deflating the corresponding nominal value with an appropriate price index to the 2000 price level.

4. Analysed by type of construction work, the gross value of construction work performed at private sector sites totalled $6.8 billion in the third quarter of 2004, down by 22.3% in nominal terms from a year earlier. In real terms, it decreased by 19.3%. This was mainly because output at newly commenced private residential building sites only partially offset the decrease in output as a result of completion of work at some large private residential building sites.

5. The gross value of construction work performed at public sector sites decreased by 15.3% in nominal terms from a year earlier to $6.9 billion in the third quarter of 2004. In real terms, it fell by 14.2%. Output at public building sites and civil engineering sites both decreased, which was largely attributable to the scale-back in the Public Housing Programme and completion of work on some public infrastructure projects.

6. On the other hand, the gross value of construction work performed by contractors at locations other than construction sites amounted to $9.5 billion in the third quarter of 2004, up by 18.6% in nominal terms over a year earlier. In real terms, the increase was 16.7%. Construction work at locations other than construction sites includes decoration, repair and maintenance, and miscellaneous new construction works.

7. Analysed by end-use category, residential building projects accounted for the largest share in the gross value of construction work performed at construction sites in the third quarter of 2004. The gross value of construction work performed for these projects was $4.8 billion, down by 32.4% in nominal terms from a year earlier.

8. Transport projects constituted the second largest category of construction site work. The gross value of construction work performed for these projects totalled $3.2 billion, representing a decrease of 18.9% in nominal terms from a year earlier.

9. Commercial building projects represented the third largest category of construction site work. The gross value of construction work performed for these projects was $2.2 billion, increased by 21.2% in nominal terms from a year earlier.

10. On a seasonally adjusted basis, the gross value of construction work performed by main contractors increased by 1.2% in nominal terms or 1.7% in real terms in the third quarter of 2004 compared with the second quarter of 2004.

11. Table 1 (text version of table 1) shows the gross value of construction work performed by main contractors in the third quarter of 2004 and Table 2 (text version of table 2) shows the revised figures for the second quarter of 2004.

12. Owing to the widespread sub-contracting practices in the construction industry, a construction establishment can be a main contractor for one contract and a sub-contractor for another contract at the same time. The gross value of construction work performed by main contractors covers only those projects in which the construction establishment takes the role of a main contractor, but not projects in which it takes only the role of a sub-contractor. However, sub-contractors' contribution should have been included in the gross value of construction work performed by main contractors for whom they worked.

13. More detailed statistics are given in the "Report on the Quarterly Survey of Construction Output, 3rd Quarter 2004". The report is now available, in both print version and download version (in PDF format), for sale at HK$14 and HK$10.5 respectively. It can be purchased online at the "Statistical Bookstore, Hong Kong" (http://www.statisticalbookstore.gov.hk). Print version can be purchased through mail order by completing and returning an order form which can be downloaded from C&SD's website (http://www.info.gov.hk/censtatd/eng/prod_serv/forms_index.html), or in person at the Publications Unit of the C&SD (Address: 19/F, Wanchai Tower, 12 Harbour Road, Wan Chai. Tel: 2582 3025).

14. For enquiries about the survey results, please contact the Construction and Miscellaneous Services Statistics Section of the C&SD at telephone no. 2805 6424 or email building@censtatd.gov.hk.

2. Draft Pak Kong and Sha Kok Mei Outline Zoning Plan approved
Hong Kong Government, 17 December 2004

The Chief Executive in Council has approved the draft Pak Kong and Sha Kok Mei Outline Zoning Plan (OZP).

"The approved OZP provides a statutory land use planning framework to guide the development and redevelopment within the Pak Kong and Sha Kok Mei area," a spokesman for the Town Planning Board (TPB) said today (December 17).

The Planning Scheme Area of the Pak Kong and Sha Kok Mei OZP, with an area of about 566 hectares, is located to the immediate east of Sai Kung Town and bounded by Ma On Shan Country Park in the west and its foothills in the north and south.

The general planning intentions of the Area are to conserve the intrinsic natural character of the scenic hilly landscape on the western and northern parts of the Area, to promote recreation and productive agriculture on the valley floors, to upgrade the obsolete and sub-standard housing in the central and southern parts of the Area and to maintain the character and intensity of the residential developments within the Area.

About 67.4 hectares of land is zoned "Village Type Development" which covers the existing recognised villages and areas suitable for village expansion.

Some 7.1 hectares of land is zoned "Residential (Group C)" to cover the existing and proposed low-rise and low-density residential developments. About 33.9 hectares of land is zoned "Residential (Group D)" to encourage upgrading and redevelopment of existing temporary domestic structures and houses.

A site, with an area of about 1.3 hectares, to the north of Kap Pin Long is zoned "Comprehensive Development Area" to facilitate comprehensive development of the site for low-rise, low-density residential development.

To meet the needs of the local residents, about 7.8 hectares of land is zoned "Government, Institution or Community". Another 0.8 hectare of land is zoned "Open Space" to meet the recreational needs of the local residents as well as the general public. Besides, some 34.6 hectares of land is zoned "Recreation" for extensive recreational uses, such as a family recreation centre, theme park and holiday camps.

About 11.2 hectares of land is zoned "Other Specified Uses" to cover the existing water treatment works and cemetery, and the land reserved for a petrol filling station. Pockets of land with a total area of about 14 hectares within Pak Kong Valley and Sha Kok Mei Valley are zoned "Agriculture" to retain and safeguard good arable land for agricultural purposes.

To retain the existing natural character and to safeguard the intrinsic landscape quality, about 248.2 hectares of land is zoned "Conservation Area". The "Green Belt" zone, covering about 123.5 hectares of land, is intended to define the limits of urban development. Some 2.4 hectares of land is zoned "Coastal Protection Area" to preserve the natural coastal features. Two narrow strips of coastal land lying to the east of Tai Mong Tsai Road are designated under this zoning. There is a general presumption against development within these zones.

The approved Pak Kong and Sha Kok Mei OZP No. S/SK-PK/8 is now available for public inspection during normal office hours at the Secretariat of the Town Planning Board, the Sai Kung District Planning Office, the Sai Kung District Office and the Sai Kung Rural Committee.

Copies of the approved plan are available for sale at the Map Publications Centres in North Point and Yau Ma Tei. The electronic version of the plan can be viewed on the Town Planning Board's website at http://www.info.gov.hk/tpb.

3. Draft Shap Sz Heung Outline Zoning Plan approved
Hong Kong Government, 17 December 2004

The Chief Executive in Council has approved the draft Shap Sz Heung Outline Zoning Plan (OZP).

"The approved OZP provides a statutory land use planning framework to guide the development and redevelopment within the Shap Sz Heung area," a spokesman for the Town Planning Board said today (December 17).

The Planning Scheme Area (the Area), with an area of about 289 hectares, is located to the east of Ma On Shan New Town. It is bounded by Three Fathoms Cove in the north and east, Sai Kung West Country Park in the southeast, lower slopes of Ma On Shan and Sai Sha Road in the west. It also covers Wong Chuk Yeung, which is enclosed by the Ma On Shan Country Park to the South of the Area.

The general planning intention of the Area is primarily to enhance landscape and nature conservation by preserving features of visual, ecological and geological significance, to allow for village expansion in appropriate areas and to identify areas with potential for recreation and private residential developments compatible with the surrounding rural and natural environment.

Three sites near Che Ha, Tseng Tau and Tai Tung Wo Liu Villages, covering about 64 hectares of land, are zoned "Comprehensive Development Area" to ensure that integrated residential and recreational developments on these sites would be developed in a comprehensive manner with adequate provision of infrastructure and community facilities.

To meet the Small House demand of indigenous villagers, about 34 hectares of land is zoned "Village Type Development".

In order to encourage development for active and passive recreation and tourism, about two hectares of land at the coastal area is zoned "Recreation". To serve the needs of the local as well as district population, a total of 6 hectares of land is zoned "Government, Institution or Community" and about 0.8 hectare of land is zoned "Open Space".

Two sites with a total area of about 57 hectares are zoned "Site of Special Scientific Interest" ("SSSI"). They comprise the coastal area near Tseng Tau which is characterised by sedimentary rocks and the coastal area between Tseng Tau South and Kei Ling Ha Lo Wai which includes a mangal community and mudflat. The purpose of the "SSSI" zoning is to conserve and protect these features of special interest and to deter human activities and developments.

Some 57 hectares of land is zoned "Conservation Area" to preserve the existing natural landscape, ecological and topographical and separate sensitive natural environment from impacts of development. To protect the natural coastlines and coastal features, some 15 hectares of land is zoned "Coastal Protection Area".

About 47 hectares of land, which consists of vegetated foothills, knolls, woodlands, burial grounds, streams and agricultural land, is zoned "Green Belt".

The approved OZP No. S/NE-SSH/7 is now available for public inspection during normal office hours at the Secretariat of the Town Planning Board; the Sha Tin, Tai Po and North District Planning Office; the Tai Po District Office; and the Sai Kung North Rural Committee.

Copies of the approved plan are available for sale at the Map Publications Centres in Yau Ma Tei and North Point. The electronic version of the plan can be viewed on the Town Planning Board's website at http://www.info.gov.hk/tpb.

4. Approved Kam Tin North Outline Zoning Plan amended
Hong Kong Government, 17 December 2004

The Town Planning Board today (December 17) announced amendments to the approved Kam Tin North Outline Zoning Plan.

Amendments involve mainly rezoning an area near Kam Tin Shi from "Agriculture" to "Other Specified Uses" annotated "Comprehensive Development and Wetland Enhancement Area", rezoning the wetland compensation areas along the West Rail and Kam Tin Bypass to "Conservation Area (1)", rezoning two sites occupied by an existing waterworks portal and a pumping station to "Government, Institution or Community", and consequential amendments arising from the incorporation of Kam Tin Bypass into the Plan.

Amendments have also been made to the Notes of the OZP in accordance with the revised Master Schedule of Notes to Statutory Plans (MSN) endorsed by the Board. Under the revised MSN, various measures including broad use terms have been introduced to provide greater flexibility for change of use and reduce the need for planning application.

The general provisions under the covering Notes and the user schedules for various land use zones have been revised to expand the scope of uses that are always permitted. Besides, the planning intentions for various zones have been incorporated into the Notes to form part of the statutory plan.

Moreover, the maximum site coverage restriction of the "Residential (Group C) 1" zone is relaxed from 20% to 40%, while the site coverage restriction of the "Residential (Group C) 2" zone is deleted.

The draft Kam Tin North OZP No. S/YL-KTN/4 incorporating the amendments is now available for public inspection during normal office hours at the following locations:

* Secretariat of the Town Planning Board, 15th Floor, North Point Government Offices, 333 Java Road, North Point;

* Tuen Mun and Yuen Long District Planning Office, 14th Floor, Shatin Government Offices, 1 Sheung Wo Che Road, Shatin;

* Yuen Long District Office, Yuen Long District Office Building, 269 Castle Peak Road, Yuen Long;

* Kam Tin Rural Committee, Kam Tin Road, Kam Tin; and

* Pat Heung Rural Committee, 4V Sheung Tsuen, Pat Heung, Yuen Long.

Any person affected by the amendments can submit a written objection to the Secretary of the Town Planning Board on or before February 17, 2005.

Copies of the draft Kam Tin North OZP are available for sale at the Map Publications Centres in North Point and Yau Ma Tei. The electronic version of the plan can be viewed on the Board's website at http://www.info.gov.hk/tpb.

5. Shui On Construction posts $392 million profit
Danny Chung, The Standard, 17 December 2004

Builder Shui On Construction and Materials has posted an interim profit of HK$392 million, up nearly 28 times from a year earlier.

It credited one-time contributions from transfers of property developments and sales of investments for the sharp jump.

For the period ending September 30, the most significant contribution was a capital gain of HK$274 million from the injection of the Rainbow City development in Shanghai into its flagship mainland property developer, Shui On Land.

The other significant source of profits was sales of investments by its two Yangtze Ventures venture capital funds. The funds earned a profit of HK$178 million from the sale of a two-thirds stake in Solomon Systech and a revaluation of their remaining stake. They earned HK$29 million from the disposal of Zhapu port and HK$22 million from a write-up of other investments.

The Zhapu port project was majority owned by China Infrastructure Group, in which Yangtze Ventures held a 33.78 stake.

Shui On's turnover dropped 19 per cent to HK$1.1 billion from a year earlier. Basic earnings per share were HK$1.46 compared with 5 HK cents last year. An interim dividend of 30 HK cents was declared.

Chairman Vincent Lo said he expected strong profits from Shui On Land and the venture capital funds in the next few years. The firm owns more than 20 per cent of Shui On Land, which was set up earlier this year.

Shui On said Beijing's austerity measures continued to put a dent in its mainland cement business, which recorded a loss of HK$20 million due to considerably weaker demand and soaring costs of production.

``We are still optimistic about prospects for the cement business,`` Lo said, adding that the effect of the austerity measures would be only short-term.

Shui On remains committed to expanding its cement investment in southwest China, which the central government is planning to develop under its ``Go West'' policy.

Plans to buy an 80 per cent stake in several cement companies in Kunming and Kaiyuan came closer to completion when plant workers voted overwhelmingly for the deal last week. Central government approval is still required.

Lo said the firm was finally pulling the plug on most of its construction materials businesses in the Pearl River Delta; except for a Zhuhai quarry, all continued to experience losses. Executive director Raymond Wong said the firm had already made a loss provision of HK$50 million.

Shui On is still pondering the future of its Hong Kong construction materials business, which lost HK$98 million in the half-year.

Its construction business turned a profit of HK$26 million on turnover of only HK$833 million. Management credited better contract administration and lower costs. The gross value of contracts on hand was HK$4.5 billion. danny.chung@globalchina.com

6. Cultural hub rivals back financial disclosure
CHLOE LAI, SCMP 17 December 2004

The government is now the last obstacle to the disclosure of key financial arrangements for the West Kowloon cultural district project.

The three contenders told legislators yesterday they respected public opinion and would unveil their proposals' financial arrangements if the government allowed it.

Speaking at a special meeting of the Legco planning, lands and works panel, the three bidders said they were also open to breaking the massive project into several smaller contracts instead of one large one.

It was the first time property developers had attended a Legco meeting to discuss the project.

The government has repeatedly refused to disclose the financial arrangements, with Chief Secretary Donald Tsang Yam-kuen saying it would hamper negotiations.

The government's insistence on a single contract approach has been widely criticised.

Henderson Land vice-chairman Colin Lam Ko-yin was the first to make the promise of financial disclosure. "If the government has no objection, we will actively consider the public's request. It shouldn't be a problem for us," said Mr Lam, whose company is bidding for the project through a subsidiary, World City Culture Park.

Sino Land executive director Yu Wai-wai, a spokesman for short-listed bidder Sunny Development, said his consortium agreed.

Cheung Kong (Holdings) executive director Grace Woo Chia-ching said: "If the rules of the game change, we will follow the new rule." Cheung Kong has launched a joint bid for the project with Sun Hung Kai Properties, under the name Dynamic Star International.

Deputy Secretary for Housing, Planning and Lands Au King-chi said the government would release all the public feedback it received, if those who expressed their opinion had no objection.

She said the government's assessment of the bids would take into account proposals for managing museums and theatres; co-operation with local and overseas arts groups; the quality of their partners; and efficiency, transparency and accountability.

The plan to build a cultural hub on 40 hectares of reclaimed land through property development has faced strong opposition since it was unveiled in September last year.

Nine non-profit groups spoke at the special meeting. All expressed strong reservations. Six of the groups - including the People's Panel on West Kowloon and the Hong Kong Institute of Architects - called for the project's suspension.