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TUESDAY, FEBRUARY 21, 1978
FINANCE COMMITTEE APPROVES $266 MILLION LOAN TO
INDUSTRIAL ESTATES CORPORATION
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THE FINANCE COMMITTEE OF THE LEGISLATIVE COUNCIL HAS APPROVED
A $266 MILLION LOAN TO THE HONG KONG INDUSTRIAL ESTATES
CORPORATION TO MEET THE DEVELOPMENT COSTS OF AN INDUSTRIAL ESTATE IN YUEN LONG.
THE LOAN, ON WHICH INTEREST OF 7-7/8 PER CENT PER ANNUM WILL BE CHARGED, IS FOR A SEVEN-YEAR PERIOD BEGINNING JANUARY 1, 1978.
THE YUEN LONG SITE CONSISTS OF 93 HECTARES OF LAND WHICH WILL PRODUCE AN ESTIMATED NET INDUSTRIAL AREA OF ABOUT 56 HECTARES.
DEVELOPMENT OF THE SITE WILL BE IN THREE STAGES. WITH 49 HECTARES BEING FORMED IN STAGE I, 27 HECTARES IN STAGE 1 AND 17 HECTARES IN STAGE 1. LAND IN STAGES I AND II IS MOSTLY CROWN LAND, WHILE THE LAND REQUIRED FOR STAGE 111 IS LARGELY PRIVATELY. OWNED.
INITIALLY, THE LOAN WILL BE RESTRICTED TO EXPENDITURE ON STAGES AND 11 ($242.2 MILLION) AND THE RESUMPTION COSTS OF STAGE 111 ($23.8 MILLION). A SEPARATE SUBMISSION WILL BE MADE FOR FINANCING THE CONSTRUCTION OF STAGE 11.
A TOTAL OF $88.59 MILLION IS EXPECTED TO BE SPENT ON THE PROJECT IN 1978/79, $89.36 MILLION IN 1979/80, $91.75 MILLION IN 1980/81 AND $9.87 MILLION IN 1981/82.
THE LARGEST ITEM OF EXPENDITURE BE ON SEWAGE TREATMENT WORKS WHICH WILL ALSO FOR THE EXPANSION OF YUEN LONG.
$50.40 MILLION WILL BE DESIGNED TO PROVIDE
CONSULTING ENGINEERS EMPLOYED BY THE INDUSTRIAL ESTATES CORPORATION ARE AT PRESENT CARRYING OUT A STUDY OF THE YUEN
LONG SITE AND THEIR PRELIMINARY REPORT IS EXPECTED TO BE SUBMITTED IN A FEW WEEKS.
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