Press Release - September 5, 2003

International developers, including those from Canada, are invited to finance and construct Hong Kong Special Administrative Region (HKSAR) Government’s West Kowloon Cultural District project, a major arts and cultural project which is set to start by April 2006 and completed in phrases between 2010 and 2012.

Development proposals are required to cover the planning, design, financing, construction, operation, maintenance, management, marketing and promotion of the new district. Deadline for proposals is March 19, 2004.

Addressing at a press conference held today (September 5) in Hong Kong, the Chief Secretary for Administration of the Hong Kong Administrative Region (HKSAR) Government, Mr Donald Tsang, said this is the first time that private developers are invited to participate in finance and construct such major arts and cultural project.

He said the West Kowloon Cultural District project will bring substantial, long-term economic benefits, and provide about 6,000 jobs for Hong Kong in the short term.

According to the cultural district's concept planner Norman Foster, the plan itself would require an investment of some HK$24 billion (C$4.7 million).

Mr Tsang expected that such project will help boost economic activities and create more jobs for the construction sector and professionals. He also said the cultural district is part of Hong Kong’s positioning as Asia's world city. It will strengthen Hong Kong’s position as the most vibrant hub for culture, arts and entertainment in the region. When completed, contemporary facilities will provide residents and visitors with a range of cultural and leisure pursuits.

"Our local artists will also have a creative hive in which to further develop their talent," the Chief Secretary said.

"The magnificent, flowing canopy sheltering the development area will become a new Hong Kong icon."

New cultural icon a magnet for world-renowned performers
Mr Tsang highlighted that cultural and commercial facilities on the site would not only draw more tourists to Hong Kong. They will also help attract more world-renowned performers and add to our attraction as the most cosmopolitan and dynamic international business centre in Asia.

He said the move is in line with the HKSAR Government's philosophy of "small government" as private-sector involvement demonstrates 'small government' principle.

"We believe that the private sector will be able to run these facilities more cost effectively, and will also enjoy greater flexibility to finance and develop them," Mr Tsang said.

"We are confident that the private sector will be interested in the project if it is offered as a commercial package that provides enough flexibility to produce a workable scheme."

The world-class future development envisages:
- performance venues, museums and some residential development in a cultural headland at the western end of the site;
- a multi-level complex of entertainment and retail facilities in the middle of the site;
- a commercial gateway at Canton Road with highrise developments;
- extensive open space for public use comprising a podium park, landscaped terraces and a waterfront promenade;
- an automated people mover running from one end of the site to the other; and
- a spectacular canopy

Mr Tsang explained that the above list, the "Government's baseline", is intended as a starting point for proponents.

Flexibility allowed in project design
The parameters are not fixed, he stressed. Those who would like to put forward a design may propose a higher development density or a different mix if they provide acceptable justification and do not compromise the character of the baseline scheme.

"This provides proponents with flexibility in the design of the main revenue-producing parts of the project, while the canopy limits the intensity of development that can be proposed."

He also stressed that the HKSAR Government will not allow the cultural facilities to play second fiddle, though property development is essential to the project's viability. There are certain mandatory requirements.

Close monitoring to ensure the highest standard
Apart from the canopy, these include the provision of the following core arts and cultural facilities:
- a complex of three theatres with seating capacities of at least 2,000, 800 and 400 seats;
- a performance venue with a seating capacity of at least 10,000 seats;
- a museum cluster comprising four museums of differing themes with total net operating floor area of at least 75,000 square metres;
- an art exhibition centre with net operating floor area of at least 10,000 square metres; and
-a water amphitheatre and at least four piazza areas

Potential developers may propose additional arts and cultural facilities.

Mr Tsang said: "We are particularly keen that these core facilities should be architecturally distinguished. We will monitor their operation to ensure that they maintain the highest standard."

He also believed that residential developments within the cultural district would not have an impact on the property market, as only some 500 flats will be built.

Deadline for proposals: March 19, 2004
Development proposals have to cover the planning, design, financing, construction, operation, maintenance, management, marketing and promotion of the new district. The deadline for proposals is March 19, 2004.

The proposals will be assessed in accordance with the criteria set out in the invitation document. A process of short-listing and negotiation will precede the Chief Executive in Council's selection of the successful developer.

“We envisage entering into a provisional agreement, and subsequently a project agreement, with the successful proponent, on the basis of arrangements that will include a 50-year land grant," the Chief Secretary said.

He anticipated that the Government will take one year to assess the proposals, adding that bidders' financial situation, as well as their ability and experiences in the construction and management of cultural facilities will be considered.

Key components ready by 2010
The theatre complex, the water amphitheatre and the piazzas will come into operation by early 2010, with the performance venue and art exhibition centre ready by the end of 2010 and the museum cluster by the end of 2012.

The developer can decide how to phase in the other parts of the development.

Meanwhile, the Government will spend some HK$440 million (C$80 million) to upgrade transport infrastructure nearby.

Detailed information on invitation for the project proposals can be found at
http://www.hplb.gov.hk/wkcd/eng/main.htm

For further information, please contact John Tam, Chief Information Officer at (416)924-5544, email [email protected] or Elison Chu, Senior Information Officer, [email protected]