Lantau Reclamation Plan To Cost HK$624bn: Govt

The government on Tuesday announced a HK$624 billion price tag for its Lantau Tomorrow reclamation plan, which would make it the most expensive infrastructure project in the city's history.

Development Secretary Michael Wong said at a press conference that this is what it will cost to build artificial islands around Kau Yi Chau, as well as to pay for further reclamation projects in Sunny Bay and Lung Kwu Tan, and to develop coastal areas of Tuen Mun.

He said despite the extremely high cost, the project will be worthwhile because it will greatly improve people's lives.

Officials say the 1,000 hectares of reclaimed land around Kau Yi Chau will be able to house up to 260,000 flats.

Wong also dismissed criticism that the project will deplete the government's coffers, saying an estimate by the Institute of Surveyors suggested that the land sale revenue generated from the Kau Yi Chau part of the plan alone could reach over HK$1.1 trillion.

He added that once the area is transformed into Hong Kong's third central business district, it will generate around HK$141 billion in economic benefits each year.

Asked whether the HK$624 billion construction figure would undoubtedly go higher due to rising construction costs, Wong said it was only a preliminary estimate and the cost could either go up or down.

"The detailed estimate will be subject to coming studies, so it could be revised upwards or downwards. Of course, we will continue to communicate with the public as to why this is worth our while," he said.

The development secretary also brushed aside environmentalists' concerns that climate change could lead to flooding on the artificial islands, saying they will be around six to seven metres above sea level.

Pro-Beijing lawmaker Edward Lau said his DAB party backed the proposed project, being as it would pay for itself despite the hefty price tag.

But Democratic Party lawmaker Andrew Wan said he fears the government has seriously underestimated the costs involved and he is not sure Hong Kong can afford it, given the uncertain economic outlook for the city. "It is a risky gamble," he said.

The government hopes to begin the first phase of reclamation in 2025, with the goal of having the first residents moving in from 2032.

The Chief Executive announced the Lantau Tomorrow project during her last Policy Address, saying 1,700 hectares of land could be reclaimed in total. About 700 hectares around Hei Ling Chau would be reclaimed as part of a second phase, but the government says it has set no date for this.