Hong Kong’s Urban Renewal Authority considers taking on Kowloon City project on its own
Managing director Wai Chi-sing says authority is now exploring taking up a major redevelopment project on its own after failed tender
Hong Kong’s cash-strapped Urban Renewal Authority has revealed that it may take on a major redevelopment project in Kowloon City on its own after a failed tender in September.
Authority managing director Wai Chi-sing said on Sunday that it was exploring the “self-initiated approach” to the Kai Tak Road/Sa Po Road development project to realise “planning gains and community benefits”.
The authority announced last week that the tender had fallen through after it attracted only one bid, which included additional terms that deviated from the project’s objectives. Property tycoon Li Ka-shing’s CK Asset Holdings said it submitted the bid.
In a blog piece, Wai conceded that taking up the project could put pressure on the authority’s finances and said it might consider arranging a bond issuance or seeking syndicated loans again “at an appropriate time”.
“If the project is stalled because of the failed tenders, it will not only affect the rejuvenation of the old area of Kowloon City and the connectivity with the Kai Tak development, but also slow down the progress of the [neighbouring] Nga Tsin Wai Road redevelopment project,” Wai said.
“It is indeed necessary for the authority to carefully study the feasibility of developing the Sa Po Road project on its own in terms of the planning and community benefits the project will bring, as well as the development costs and risks involved.”
