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Press Release - October 13 1998

Garden City at Kai Tak

Plans are being drawn up to build a Garden City at the Kai Tak airport site and adjacent areas to house more than 320,000 people, the Director of the Hong Kong Economic and Trade Office of the Hong Kong Special Administrative Region (SAR) Government in Canada, Mr Donald Tong, said today (October 13).

Speaking at a breakfast seminar in Winnipeg, Mr Tong said the ambitious programme , known as the South East Kowloon Development, is being speeded up to allow for the intake of population to start in 2003.

More than 100 guests, including members of the Hong Kong Canada Business Association (Winnipeg Section) , Industry Canada, Manitoba Trade and Winnipeg Chamber of Commerce, were told of opportunities available in Hong Kong for Canadian corporations and professionals in spite of the current financial turmoil affecting Asia.

The new city will be fully self-contained with world class amenities, schools and transport links to other urban districts. It will involve 579 hectares of land of which 280 hectares will come from the existing airport site and the rest from reclaimed land.

"The Garden City will have a 50-hectare Metro Park, a world-class international sports stadium with a retractable roof, an Aviation Academy and Museum, 45 schools, a hospital and office buildings and malls," Mr Tong said.

More than 14,000 jobs will be created during the reclamation and construction period which is expected to span more than 10 years. Site formation will start at the end of this year.

Mr Tong pointed out that the Garden City is just one of the many major infrastructure projects the SAR Government has initiated for the next five years, spending around C$47 billion in the process.

Like the state of the art airport at Chek Lap Kok which cost $C31 billion to build, Mr Tong added, the SAR Government is fully committed to the implementation of the programme as it is vital for the continued economic growth of the territory.

Apart from the new city, the Executive Council of the SAR has just given approval for the planning and construction of the territory's second railway linking west Kowloon to northwest New Territories.

Costing about C$13 billion, the new railway known as the West Rail will complement the current line running from urban Kowloon to the Hong Kong-China border at Lowu.

The West Rail will create 13,000 jobs in the next few years, with 14 main civil contracts being awarded by mid-1999. It will be a 30.5 kilometres long, electrified, double-track railway.

Other projects include a 12.5 kilometre extension of the Mass Transit Railway System to a new town in Tseung Kwan O, new port development, highways, bridges and public housing estates.

"All our contracts are open to tender by both local and overseas firms. There are various good opportunities for the various components of the project which you do have the expertise. I urge you to capitalise on these golden opportunities."

Mr Tong stressed that the SAR Government practises level playing field in approving and awarding contracts, citing as an example, the new airport projects of which 77 per cent of the C$19 billion contracts went to overseas firms.

"The nationality of the bidders is not one of the criteria. Our awarding principles are easy to understand and very simple: value for money and timely delivery of quality product."

"We do not show favouritism towards contractors including those from Hong Kong or China, nor will we discriminate against any particular economy."

In conclusion, Mr Tong explained that in spite of the projected negative growth rate of 4 per cent for 1998, the territory with its vast fiscal reserves, and sound financial and monetary system, will be able to ride out the storm and continue with the implementation of its major infrastructure projects.

For further information please contact Chief Information Officer, Frank Chuan at telephone no. (416) 924-5544.



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