Northeastern NT Revamp First Stage To Cost HK$46bn

The government on Wednesday revealed that the initial stage of the northeastern New Territories development will cost HK$46 billion.

In a paper submitted to Legco, the government said it will need more than HK$32 billion for construction and planning works, and another HK$14 billion for land acquisition and compensation.

But it only needs Legco’s approval for HK$33.6 billion of the funding, as part of the cost for land acquisition will be drawn from the Capital Works Reserve Fund.

The government said it plans to seek the funding approval from Legco’s finance committee in the first quarter of this year, and to begin land resumption and clearance in the second half of this year.

A government spokeswoman said part of the funding request will cover a one-off ex-gratia compensation payment ranging from HK$250,000 to HK$600,000 per household.

She said the first phase of works will affect 445 households involving some 1,160 residents, as well as about 140 businesses.

But the spokeswoman said she can’t say for sure yet how many households will get the compensation, as authorities are still vetting their eligibility.

Other works covered by the funding request include site formation, and the construction of infrastructure and facilities like sewage treatment. The money will also cover the costs for detailed planning of the project’s later phases.

The development plan has for years drawn strong opposition from residents and activists, but the spokeswoman said people will now “start asking how to implement the project”.

She said the government may ask for more funding in 2023 for the next stage of works.

The project involves two new development areas in Kwu Tung north and Fanling north, and is expected to provide 71,800 flats, of which nearly 70 percent will be public housing.