ENG-2001 — Page 286

LAND, PUBLIC WORKS AND UTILITIES

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Land Acquisition

When private land has to be acquired in the public interest, mostly to implement public works projects, it may be resumed under the relevant ordinances which provide for payment of compensation based on the value of the property and for business loss where appropriate, at the date of acquisition. If agreement cannot be reached on the amount payable, either party can refer the claim to the Lands Tribunal for adjudication. Apart from statutory compensation, there is an alternative system of ex gratia payments to provide a simplified compensation procedure.

In the New Territories, a total of 421 282 square metres of private land comprising 224 897 square metres of agricultural land and 196 385 of building land was acquired in 2001. A large percentage of the acquired area was to provide land required for the implementation of road improvement works and river training projects. The road improvement works included the construction of roads in Chok Ko Wan, North Lantau and in Hung Shui Kiu, Yuen Long. The river training projects covered the construction of main drainage channels for Yuen Long and Kam Tin and the village flood protection works in Mai Po Lo Wai and Mai Po San Tsuen, Yuen Long. In the urban area, 62 private lots were acquired for road and service lane improvement works. In addition, the resumed squatter areas at Diamond Hill and Inverness Road, in Kowloon, were cleared to make land available for two large public housing and school development projects.

More than $2.5 billion was paid out region-wide in compensation payments in 2001.

The Lands Department was also involved in the resumption of land for implementation of urban renewal projects undertaken by the Land Development Corporation and its successor, the Urban Renewal Authority. During the year, compensation totalling $202 million was paid to owners of 134 resumed properties affected by six renewal projects in Mong Kok, Yau Ma Tei, Wan Chai, Kennedy Town, Tsuen Wan and Tsim Sha Tsui.

The emphasis of land acquisition work relating to the railway projects has shifted from the West Rail (Phase I) to projects such as the Lok Ma Chau Spur Line, property development along the West Rail, the Ma On Shan to Tai Wai Link, the Tseung Kwan O Extension, and preliminary investigation of proposals for new projects under the Railway Development Strategy 2000.

Land Disposal

All land within the HKSAR is state property, and the Government is responsible for its disposal and management. Government land identified as being suitable for private development may be sold by public auction or tender. Land is also made available by private treaty grant at nominal land premium to the Hong Kong Housing Authority for providing subsidised home ownership flats, and to non-profit- making educational, medical and charitable institutions for operating schools, hospitals and social welfare and other community facilities. Land grants at reduced land premium are made to the Hong Kong Housing Society for subsidised housing land projects, and at full market value premium to public utility companies for their installations and related developments.

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