ENG-2003 — Page 277

LAND, PUBLIC WORKS AND UTILITIES

projects included the rehabilitation works at Ping Yuen River, the main drainage channels for the Tin Tsuen Channel and drainage improvement works for Pat Heung in the Yuen Long District.

More than $1.434 billion was paid out territory-wide in compensation payments in 2003.

The Lands Department was also involved in the resumption of land for implementation of urban renewal projects undertaken by the Urban Renewal Authority. During the year, statutory compensation totalling $65 million was paid to owners of 60 resumed properties affected by 11 urban renewal projects in Mong Kok, Yau Ma Tei, Sham Shui Po, Wan Chai, Kennedy Town, Tsuen Wan and Tsim Sha Tsui.

The Lands Department continued to resume and clear land for implementation of railway projects. By year-end, $131 million was paid out in respect of the West Rail project and $65 million for the KCR East Rail extensions which included the Lok Ma Chau Spur Line and the extension from Hung Hom to Tsim Sha Tsui.

Land Disposal

All land within the HKSAR is state property, and the Government is responsible for its disposal and management. Government land for private development is normally disposed of by way of public auction or tender. Land is also made available by private treaty grant at a nominal land premium to non-profit making educational, medical and charitable institutions for operating schools, hospitals and social welfare and other community facilities. Land grants at full market value premium are made to public utility companies for their installations.

New government land leases are normally granted at a 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.

As part of a package of measures implemented since November 2002 to restore public confidence in the property market, scheduled land auctions had stopped and the Application List system was suspended until the end of 2003.

Sites sold by public tender in 2003 included a heritage site for commercial development and preservation of historic buildings, with a total area of 1.23 hectares, and four sites, for petrol filling stations, with a total area of 0,8 hectares.

In addition to land supply from the Government, existing privately held land leases. can be amended, normally at a premium, on lease-holders' initiatives to provide for a more intensive or different type of development in accordance with the prevailing planning intentions. These amendments are effected by either lease modification or land exchange. During the year, 152 such transactions were concluded, involving a total of 1 515 hectares.

Land Control and Estate Management

The Task Force (Black Spots) (TFB) was set up in 1994 to clean up environmental 'black spots' that arose in the 1980s as a result of the massive conversion of agricultural land into open storage sites, container depots and vehicle parking/repairing sites in the New Territories. During the year, 286 sites covering

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