ENG-2000 — Page 279

LAND, PUBLIC WORKS AND UTILITIES

The Railway Development Section continued its work on railway land issues, and the major clearance work for the West Rail (Phase I) has been completed. More than 1 000 claims have been received and are being processed, and over 30 claims have been referred to the Lands Tribunal for determination. The estimated resumption cost for the West Rail (Phase I) is about $3.5 billion.

Land Disposal

All land within the Hong Kong Special Administrative Region is state property, and the Government is responsible for its disposal and management. Most government land that is identified as being suitable for private development is sold by public auction or tender. Land is also made available by direct grant and at nominal premium to the Housing Authority for providing subsidised home ownership flats, and to non-profit-making educational, medical and charitable institutions which operate schools, hospitals, and social welfare and other community services. Land grants at reduced premium are made to the Hong Kong Housing Society for subsidised housing projects and at full market value premium to public utility companies for their installations and related developments. Direct land grants are also made at full market value premium for other special projects for which specific approval from the Executive Council has been obtained.

New government land leases are normally granted at premium for 50 years from the date of grant and subject to an annual rent equivalent to three per cent of the rateable value of the property at the date of grant, adjusted in step with any changes in the rateable value thereafter.

Every year, the Lands Department announces the Land Sale and Development Programmes, which cover land for housing and non-housing development in a five- year period. A date-specific programme for auctions and tenders is published under the Land Sale Programme each year. Since April 1999, a new procedure for land sales by application has been introduced with the aim of providing flexibility to make available a sufficient amount of land to meet market demand.

During the year, 18 housing sites with a total area of 21.02 hectares and three sites. for the Private Sector Participation Scheme with a total area of 5.88 hectares were sold. One site for the Home Ownership Scheme with a total area of 4.55 hectares and six sites for the Tenant Purchase Scheme with a total area of 42.49 hectares were granted to the Hong Kong Housing Authority. Two sites for the Senior Citizen Residence Scheme with an area of 0.4 hectare were granted to the Hong Kong Housing Society. Other major land grants made include an 18-hectare site for the Cyberport project, a 125-hectare site for the Hong Kong Disneyland project and an eight-hectare site for the first phase of the Science Park development.

In addition to the Government's Land Sale and Development Programmes, the existing large number of privately held leases can be amended on lease-holders' initiatives to provide for an increased or differing form of development in accordance with current planning intentions. These amendments are effected by either lease modification or land exchange. During the year, 182 such transactions were concluded, involving a total of 1 132.46 hectares.

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