Following is a question by the Hon Albert Ho and a reply by the Secretary for Development, Mrs Carrie Lam, in the Legislative Council today (June 11):
Question:
Regarding matters relating to the development of Park Island (PI), a private residential property project, as well as the Ma Wan Park (MWP) in Ma Wan by a developer, will the Government inform this Council:
(a) given that the developer surrendered in 1997 a piece of land which composed 98.7% of farmland in exchange for the land lot of PI, of the premium that should have been paid at that time by the developer for land exchange and modification of the land use, and the actual amount of premium undercharged by the Government then, together with the reasons therefor (please specify the description of each deduction item and the amount involved);
(b) given that the developer was allowed to deduct the costs of developing MWP from the premium payable for the land lot of PI, and that the developer had revised the design of MWP during the period from 2003 to 2006 and changed the theme for MWP from active recreational facilities to a park with a theme based on "Naturally Hong Kong", whether the authorities have assessed the costs of developing MWP with the new design; if the costs have been reduced, whether the authorities have recovered the difference from the developer; if they have not recovered the difference, of the reasons for that; and
(c) of the main terms set out in the MWP development agreement signed between the Government and the developer in 1997; and among the development requirements set out in the agreement, of those involving items that are still pending or have not yet been completed, together with the reasons therefor; and the differences between the current situation and the requirements as specified in the agreement, as well as the authorities' mechanism and ways to monitor the developer's compliance with the agreement?
Reply:
Madam President,
Park Island (PI) is located at the "Comprehensive Development Area" (CDA) on the Ma Wan Outline Zoning Plan (OZP), and is a comprehensive development scheme. In accordance with the OZP, for developments on land within the CDA, the applicant is required to prepare and submit a Master Layout Plan (MLP) to the Town Planning Board (TPB) for approval.
My reply to the three-part question is as follows:
(1) The Government granted the lots of PI to the developer by way of land exchange in 1997 in accordance with the MLP approved by the TPB. The market value premium of the site at that time was estimated to be $6,155.59 million. This had already reflected the value of the land involved in the exchange exercise, which included 95 062 square metres of the agricultural and building lots owned and surrendered by the developer, and 126 500 square metres of the lots of PI regranted by the Government. The costs of items deducted from the above market value premium payable were as follows:
Items
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(i) Ma Wan Park (MWP) $803.63 million
(ii) Infrastructure and
new village type
development area $1,639.24 million
(2) The Government has deducted $803.63 million as the costs for the development of the MWP from the market value premium payable for the lots of PI. The developer shall build the MWP in accordance with the approved MLP. In the event of any changes to the MLP or for other reason, resulting in a decrease in costs and expenses for the development of the MWP, the developer shall pay to the Government the unexpended balance of the sum which has been previously deducted from the premium in question and interest.
(3) The key terms and conditions of the Heads of Agreement (HoA) for the development of Ma Wan Park (MWP) signed between the Government and the developer in 1997 are as follows:
(a) The construction and development of the MWP may be implemented by the developer in two phases. The developer will bring Phase I of the MWP into operation within five years from the date vacant possession of the land has been delivered to the developer. Given that the Phase II development can only commence after the villagers of the lots in question and the residents of the stilted structures have been vacated, no completion date has been set;
(b) The MWP will be used and operated as a public recreational development which shall include features for entertainment, recreation, amusement, shopping, restaurants, kiosks, catering, advertising and other commercial facilities as may be approved by the Director of Lands (the Director);
(c) The developer shall build the MWP in accordance with the approved Master Layout Plan (MLP). Should amendments be made to the approved plan, approval should be sought from the Director;
(d) The costs and expenses of the development of the MWP may be deducted in the calculation of the premium payable on the regrant of the Northeastern "Comprehensive Development Area" (i.e. the Park Island lot) or the grant of the MWP land;
(e) In the event of any changes to the MLP or for other reason, resulting in a decrease in costs and expenses for the development of the MWP, the developer shall pay to the Government the unexpended balance of the sum which has been previously deducted from the premium in question and interest. Nevertheless, any increase in the costs and expenses for the development of the MWP shall be borne by the developer;
(f) The company managing the MWP shall have full rights and discretion to enter into agreement(s) for the management and/or day-to-day operation of the MWP and grant licences or tenancies of the MWP, provided that no estate or interest in land in the MWP shall be created or conveyed under the said agreement(s); and
(g) The Government agrees that the MWP will be operated on a commercial basis and the company managing the MWP will set up a sinking fund. Net profit after deduction of reasonable operating costs shall be paid to such sinking fund for the purpose of maintenance, repair and improvement of the MWP.
The developer has adopted the MLPs approved by the TPB in 2003 and 2006 as the blueprint for the development of the MWP. The MWP consists of two phases. There are three key facilities in Phase I, namely "Nature Garden", "Noah's Ark" and "Solar Tower". The "Nature Garden" has been opened to the public free of charge since July 1, 2007. The "Noah's Ark" is expected to be completed before the end of 2008 and the completion of "Solar Tower" will depend on the progress of the gazettal of the revised road scheme under the Road (Works, Use and Compensation) Ordinance. Phase II of the MWP aims to preserve the setting of Ma Wan Old Village and revitalise the area. Given that the relevant works can only commence after the local villagers and the residents of the stilted structures have been vacated, no fixed date has been set for their completion under the HoA.
The Government has been monitoring the progress of the works through liaison and meetings with the developer. Also, the developer submits quarterly accounts of costs of work items audited by auditors to the Government for examination.
Ends/Wednesday, June 11, 2008
Issued at HKT 14:48
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