XN000022-1982-07-29 — Page 3

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THURSDAY, JULY 29, 1982

AGREEMENT REACHED ON DEVELOPMENT OF TIN SHUT WAI

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THE GOVERNMENT HAS ENTERED INTO A JOINT VENTURE WITH MIGHTYCITY COMPANY LIMITED TO DEVELOP TIN SHUT WAT IN YUEN LONG AND TO PROVIDE HOMES FOR 135 000 PEOPLE.

THE AGREEMENT INVOLVES A NOVEL ARRANGEMENT WHICH WILL REQUIRE THE DEVELOPER TO PLOUGH BACK INTO THE LAND THE ENTIRE SUM THAT THE GOVERNMENT WILL PAY FOR ITS ACQUISITION, THEREBY LOCKING THE COMPANY INTO THE DEVELOPMENT,

THIS WAS ANNOUNCED BY THE SECRETARY FOR LANDS AND WORKS, MR NICKY CHAN, AT A PRESS CONFERENCE TODAY FOLLOWING THE SIGNING OF AN AGREEMENT TO THIS EFFECT.

MR CHAN SAID THAT UNDER THE AGREEMENT THE DEVELOPER WOULD SURRENDER ITS LAND, MEASURING ABOUT 488 HECTARES, IN THE NORTH-WESTERN PART OF THE NEW TERRITORIES TO THE GOVERNMENT.

+OF THE 488 HECTARES, ABOUT 170 HECTARES WILL BE SET ASIDE AS A DEVELOPMENT ZONE FOR A POPULATION OF 135 000 PEOPLE SPLIT EQUALLY BETWEEN PRIVATE AND PUBLIC HOUSING. THE BALANCE OF 318 HECTARES WILL BE FORMED BY THE DEVELOPER AND RETAINED BY THE GOVERNMENT AS A LAND BANK, HE SAID.

*WITHIN THE 170 HECTARES, THE DEVELOPER WILL BE GRANTED ABOUT 40 HECTARES FOR BUILDING PRIVATE HOUSING, LEAVING ABOUT 130 HECTARES FOR COMPLEMENTARY PUBLIC DEVELOPMENT BY THE GOVERNMENT.✦

APART FROM PROVIDING PRIVATE HOUSING TO ABOUT 67 500 PEOPLE,

THE DEVELOPER WILL BE REQUIRED:

* TO FORM THE WHOLE SITE OF 488 HECTARES,

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TO PROVIDE TRUNK STORMWATER DRAINAGE IN THE AREA, AND

* TO PROVIDE ENGINEERING INFRASTRUCTURE

WITHIN THE DEVELOPMENT ZONE OF 170 HECTARES.

THESE WORKS WILL BE CARRIED OUT BY THE DEVELOPER UNDER CONTRACT TO THE GOVERNMENT.

WORKS TO BE UNDERTAKEN BY THE GOVERNMENT CONSIST OF 1

* THE DEVELOPMENT OF PUBLIC HOUSING, IN THE

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FORM OF RENTED HOUSING AND HOME-OWNERSHIP SCHEMES, FOR 67 500 PEOPLE AND

THE PROVISION OF SCHOOLS, CLINICS, OPEN SPACE AND OTHER COMMUNITY SERVICES WITHIN THE DEVELOPMENT ZONE.

ON THE COST OF ACQUISITION OF THE LAND, THE 488 HECTARES TO BE SURRENDERED IS WORTH $2.258 BILLION CALCULATED ON THE BASIS OF STANDARD ZONAL RATES PAID BY THE GOVERNMENT FOR LAND RESUMED IN THE NEW TERRITORIES.

AFTER DEDUCTING FROM THIS AMOUNT $800 MILLION, THE DEVELOPMENT VALUE OF THE 40 HECTARES TO BE GRANTED BACK TO MIGHTYCITY FOR PRIVATE DEVELOPMENT, THE NET PAYMENT TO THE DEVELOPER IS $1.458 BILLION.

/CONTRARY TO