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Written by: Wang Jieen
2021-06-13 16:24
Last update date: 2021-06-13 16:24
The Chief Executive Officer of the URA, Wei Zhicheng, published a blog today (13th), saying that the "pre-tendering" model will be piloted in the Oak Street project to introduce developers into the site early, that is, when the project clearance work enters the final stage, the project will be prepared to start the project The bidding process is expected to be about one year ahead of the bidding process, which is a relatively ordinary process of "clearing the site first and then bidding".
Wei Zhicheng continued that the URA will deploy a number of large-scale redevelopment projects in the next five years. Some of the projects have a site area of more than 20,000 square meters and need to relocate more than 2,000 households. The estimated expenditure will exceed 60 billion yuan.
The URA piloted "pre-tendering" for the Oak Street project.
(Profile picture)
Can help funds "return from circulation" as soon as possible
Wei Zhicheng pointed out that if "pre-tendering" is used, the URA can collect the upfront payment from the bid-winning developer in advance, so that the funds can be "returned" in advance.
In addition, the developer can also take over the project early, drafting customs plans, submitting it to government departments for approval, etc., so that related work can be completed 9 months to a year earlier.
When the developer takes over the site after the project is cleared, he can start construction immediately according to the pre-approved plans and speed up the application to the government for pre-sale of units.
Introduce a two-phase payment arrangement
He also pointed out that "pre-tendering" will introduce a two-phase payment arrangement, which is different from the previous tendering, when the successful bidder has to pay the amount of the winning bid in one lump sum when the URA awards the cooperative development contract, which may promote the participation of small and medium-sized developers. .
Oak Street project as a pilot
Wei Zhicheng said that because "pre-tendering" is a new attempt, smaller projects were selected for implementation in order to test the market response.
He explained that because the oak tree project has a site area of less than 1,000 square meters, and only a small number of residential tenants and owner-occupied shops have not been relocated, the complexity of clearing the site is relatively low, so the URA used it as a test project.
He said that the team has been asked to use this project as a case study to analyze the "pre-tendering" model and use it as a reference for optimizing the bidding procedures for URA projects in the future.
The Bailey Street project will use the traditional tendering model
As for another redevelopment project, "To Kwa Wan Bailey Street/Wing Kwong Street Development Project", it is the first project to complete the acquisition, clearance and launch of development since the URA launched the "Community Development" in To Kwa Wan.
Wei Zhicheng said that the development of the To Kwawan community will be divided into 3 to 4 phases and the Bailey Street project is the first to be launched.
He also pointed out that the project issued an invitation for a letter of intent for cooperation and development last Friday.
Due to the large scale of the project, the site area is equivalent to more than 10 times that of the Oak Street project, and the land lease terms are also more complicated. Therefore, this time we will adopt the traditional tendering model and launch the tender after the completion of the clearance.
On Friday, the URA issued an invitation for a letter of intent for co-development of the Bailey Street/Wing Kwong Street development project in To Kwa Wan (the Bailey Street project).
(Photo of URA)
Following the usual reconstruction process, the reconstruction cycle will take more than 15 years
Wei Zhicheng said that the URA will deploy a number of large-scale reconstruction projects in the next five years, and the estimated expenditure will exceed 60 billion yuan. If the usual reconstruction process is followed, the entire reconstruction cycle will take more than 15 years.
Therefore, the URA will accelerate the study of measures to reduce the reconstruction process such as planning and acquisition to shorten the reconstruction cycle and speed up the return of funds. It is hoped that the entire cycle of the reconstruction project can be shortened by three years.
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URA Wei Zhicheng