LAND, PUBLIC WORKS AND UTILITIES
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development of Tung Chung New Town on North Lantau, the Shenzhen River Improvement Works in North District and a number of village flood protection schemes in Yuen Long District.
On Hong Kong Island and in Kowloon, compensation of about $130 million was paid for land and buildings acquired during the year for public works projects, such as open space developments at Lun Fat Street on Hong Kong Island and Fung Tak Road Extension in Kowloon, as well as road improvement schemes such as the improvement work for Lung Cheung Road/Ching Cheung Road.
The Lands Administration Office was also involved in the resumption of land for implementation of urban renewal schemes carried out by the Land Development Corporation and the Hong Kong Housing Society. More than 60 properties were resumed at a cost of about $1 billion in 1997.
A specialist section, called the Railway Development Section, was set up in July 1997 within the department to deal with land aspects of various railway projects. It has been working on the gazetting and land acquisition for Phase I of the West Rail Project, which will eventually involve the acquisition of about 1 300 private lots, and clearance of over 390 hectares of government and private land. Phase I of the West Rail Project was gazetted under the Railways Ordinance in October 1997.
Land Disposal
All land within the HKSAR is state property. The government is responsible for the management, use and development of the land and for its lease or grant to individuals, legal persons or organisations for use or development. From July 1, 1997, leases of land are normally for a term of 50 years from the date of grant on payment of a premium and subject to an annual rent equivalent to three per cent of the rateable value of the property at that date, adjusted in step with any changes in the rateable value thereafter. The 50-year lease term from the date of grant avoids the situation where too many leases expire on the same day, thereby allowing the extension of leases to be dealt with individually.
In July 1997, the government announced its first five-year land disposal programme (on a financial year basis), which will be updated and rolled forward a year for announcement before the start of each financial year. The programme will be site specific for the first two years and more general (in terms of land use and hectarage) for the following three. This information will provide a clearer picture on land supply and facilitate planning by developers.
To help meet the Chief Executive's flat production target of 85 000 units per year, the Lands Department has assumed a direct role in the private sector's contribution towards the target. All transactions are closely monitored from the date of initial site availability right through to consents to sell and occupation.
The department has also streamlined its procedures in land exchanges and modifications, and is assisting the private sector to redevelop all available and suitable land for early residential development.
Although most government land available for private sector development is sold by public auction or tender, land is also made available at nominal premium to the Housing Authority for its public rental estates and Home Ownership Scheme, and to non-profit-making charitable, medical and educational institutions which operate