ENG-2007 — Page 264

216 | Infrastructure Development and Heritage Conservation

Land Acquisition

When private land has to be acquired for public use, it may be acquired through negotiations or by resumption. The ordinances provide for compensation to be paid for the value of the property resumed as at the date of acquisition and for loss of business. If agreement cannot be reached on the amount of compensation to be paid, either party may go to the Lands Tribunal for adjudication. As an alternative to statutory compensation, there are simplified assessment procedures for early release of payments to facilitate clearance of the land.

Some 235 600 square metres of private agricultural land were acquired in 2007. A total of $409.6 million was paid as compensation during the year.

The Lands Department was also involved in the resumption of land for urban renewal projects undertaken by the Urban Renewal Authority and the Hong Kong Housing Society. During the year, compensation totalling $185.2 million was paid to owners of 136 resumed properties and occupiers affected by 16 urban renewal projects. It also resumed and cleared land for the former Kowloon-Canton Railway Corporation for its railway projects. By year-end, $8 million had been paid as compensation for land resumed for the West Rail project and $14 million for the East Rail Extension project which includes the Sheung Shui to Lok Ma Chau spur line and the Hung Hom to Tsim Sha Tsui line.

Land Disposal

While government land available for disposal for permanent development is usually offered for sale by public auction, sale by public tender is also a practice adopted in certain circumstances, such as when the sites being offered for sale do not attract very wide interest. Examples are sites for petrol filling station purposes or when the Government wishes to examine in advance detailed proposals, such as the tender for the new cruise terminal. In some cases, land may be made available by private treaty grant. In October 2003, the Government released a statement on the implementation and consolidation of its housing policy. Since January 2004, new government land would normally be disposed of through the Application List System, which is a market-led mechanism. In 2007, 11 residential sites, one commercial/ residential site, seven petrol filling stations and one marine fuelling station site, measuring a total of about 15.66 hectares were sold for $33.1 billion.

In addition to land supply from the Government, existing privately held land leases may be amended, normally at a premium, on lease-holders' initiatives to provide for more intensive or different type of development in accordance with the prevailing planning intention. During the year, 128 transactions involving lease modifications and land exchanges were concluded, involving a total of about 172.55 hectares of land and a land premium of $12.24 billion.

Land Management and Lease Enforcement

The Lands Department manages properties which have reverted to government ownership through voluntary surrender, resumption, expiry of government leases, and re-entry or vesting actions under various ordinances. During the year, 23 new