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XCC(77)78
機密
Copy No...... of 80 Page 4 of 5
resumption and is closest to the source of the fung shui problems. It is likely that parts of Stages II and III will ultimately have to be subject to a height restriction of 10.8 metres (35 feet) for fung shui reasons. If the area thus affected is very significant, consideration may be given to relocating Stage III north of the proposed sewage treatment works.
Timing
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It is estimated that work at Yuen Long could begin 6 months after authority is given to establish an industrial estate. The first sites for allocation might be expected to be available 18 months after work has begun and the formation of the estate would be complete within a further 18 months.
C
D
C.S. 166
Costs
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The total cost of the development of the Yuen Long Industrial Estate at January 1977 prices (but including more recent revisions in the rates for resumptions and clearances) is HK$280 million. A break- down of the costs of forming and servicing the estate is shown at Annex C. The possibility of financing the project by a loan from the Development Loan Fund to the Corporation (along the lines of the loans in respect of the development of Tai Po) will be examined and if feasible, will be put to the Finance Committee of the Legislative Council.
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Based on the estimated cost of $280 million (approximately) and assuming that the project can be financed from the DLF at an interest rate of 7.7/8% as for the Tai Po Estate, the capital cost of the completed land would be about $540 a square metre ($50 a square foot). It is planned to lease the sites at a premium not below the cost of forming and servicing the land, and subject to no substantial escalation in the construction costs during the implementation period, the land premium to be charged for Stage I can be expected to be around $590 a square metre ($55 a square foot compared with $45 for Tai Po).
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The terms of grant, which will be submitted for the formal approval of the Governor in Council in due course, will follow the general lines of the conditions of grant of the Tai Po Industrial Estate, the basic terms of which are set out in the extract from memorandum XCR(76)189 (Annex D).
Public relations aspects
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The development of a second industrial estate is likely to be welcomed as part of the Government's policy to encourage new
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