TNAG-0768-FCO40-972-Supplies-of-electrical-power-for-Hong-Kong-Castle-Peak-power-1978 — Page 102

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(a) The North East part. This consists of the 31⁄2 miles of

coastline from Ngau To Wan to Tap Sui Mun, all of which is suitable for industrial development, particularly that requiring sea access. It includes the 1320 acres East of Penny's Bay, in which area the Wilbur Smith report found that 1150 acres were suitable for construction to R-2 (200 persons per acre) and R-3 (50-65 persons per acre) for private housing, or industry, and estimated that it could house a population of between 15, 000 and 35, 000.

(b) Road access to the tourist area in South Lantau by means

of a road link from Ngau Kwo Long to Mui Wo.

(c) The large area capable of reclamation and development

between Shek Lap Kok island and Tung Chung and Ngau Kwo Long. The amount of land available for industry and housing in this area would depend upon whether it was decided to build an alternative airport, but in any event it would be considerable, as would also be the work of reclamation involved.

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A decision to proceed with a bridge or perhaps tunnel, if found feasible, need not commit Government initially to more than (a). This by itself would be a valuable initial and self-contained phase. In the 1973 Wilbur Smith report it was estimated that the cost of a 4-lane highway bridge of $225 million at 1973 prices could be recovered by the sale of 585 acres at a unit price as low as $40 a square foot. Assuming the right economic climate, it is therefore likely that land sales would cover the cost of the bridge and associated roads, even on the basis of development restricted to this North Eastern part of Lantau. Such partial development would give time to study the traffic implications for the Western corridor on the mainland of complete development of Lantau.

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The preliminary estimates of the special committee on maxi- mising land resources on the mainland do not in any way detract from the original belief of the Government that by the mid-80s the development of the land potential of North Lantau would be essential. It is also incon- testable that one of the major deterrents to investment in new types of industry, and to industrial diversification generally, is the lack of land and Hong Kong's reputation for inadequate land supplies.

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Clearly the Government cannot be committed until it has con- sidered the feasibility study, but in view of the Company's predicament, and of the value of even an initial and partial development scheme, Honourable Members might wish to indicate that the study should be suffi- ciently detailed to allow the Government, if it so decided, to proceed to tender immediately if feasibility was proved. Proposals for the scope of the study will be put to Honourable Members shortly.

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