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Written by: Zhong Yan
2021-06-15 17:51
Last update date: 2021-06-15 17:51
The URA held a media gathering today (15th) and revealed that it has formulated the largest business plan in history for the next five years. It is expected that the total cost of acquisition expenses and construction costs will exceed 100 billion yuan in the future, and financing is expected in 2024/25. need.
In addition, the government earlier invited the URA to assist in the reconstruction of the civil service cooperatives. The two pilot projects were Shing Tak Street/Ma Tau Chung Road and the Kao Pui Lung Road/Zhejiang Street project.
The URA stated that the latter’s objections were louder and even more blunt: “I don’t know if the project can be completed.”
Zhou Songgang, chairman of the URA, pointed out that the cash flow is currently about 9 billion yuan and is expected to increase to about 20 billion yuan by the end of March next year.
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Zhou Songgang, chairman of the URA, pointed out that the URA has formulated a business plan for the next five years, describing it as the largest scale ever and has been approved by the Financial Secretary.
To build 18,000 units in the next 5 years, the cash flow will increase to 20 billion by the end of March next year
He said that the business plan covers a number of newly curated reconstruction projects. It is expected that the total cost of acquisition expenses and construction costs to be paid in the future will exceed 100 billion yuan, which can provide a total of about 18,000 new units.
He also pointed out that the URA’s cash flow is currently about 9 billion yuan and is expected to increase to about 20 billion yuan by the end of March next year.
Wei Zhicheng, the chief executive of the URA, predicts that the URA may experience negative cash flow in the 7 to 8 years after 2024.
(Photo by Wang Jieen)
No government injection is required for the time being
Zhou Songgang emphasized that although financing needs are expected in 2024/25, the URA will go to the financial market to raise funds on its own and will not require the government to inject capital for the time being.
The Chief Executive Officer of the URA, Wei Zhicheng, also pointed out that he plans to hire a financial consultant this year to explore whether there is a need for funds in the future.
He predicts that in the 7 to 8 years after 2024, the URA may have negative cash flow, and the income may not cover the expenses by then, so it is necessary to understand whether it needs to issue bonds, etc.
Reconstruction of public service cooperatives has a pilot program in early August or may receive an acquisition proposal
In the reconstruction of the civil service cooperatives, Zhou Songgang revealed today that the Shing Tak Street/Ma Tau Chung Road project is progressing rapidly. It is hoped that the acquisition proposal can be issued to the owners in early August. With the assistance of the URA, all cooperatives have been disbanded so far and all owners Both can consider accepting the acquisition proposal.
Unknown whether another pilot can be completed
Regarding the Tuoba Lung Road/Zhejiang Street project, Zhou Songgang said that because it involved the revision of the statutory planning blueprint, it would have to be reviewed by the Town Planning Board before making any further decisions.
Wei Zhicheng even pointed out that the opposition to the project is louder, and there are still 9 cooperatives that have not been "disintegrated." He bluntly said: "I don't know if the project can be completed."
Wei Zhicheng hopes that the relevant members can refer to the experience of the Shing Tak Street/Ma Tau Chung Road project and consider it in detail at that time.
The URA will conduct investigations for them in the future to understand the tendencies of the members, and then review the chances of successfully completing the project. If the response is not overwhelming, the project may have to be abandoned in the future.
When asked whether he would use the "Land Resumption Ordinance" to reclaim units, Wei Zhicheng said that the Ordinance is not a "sword of supremacy" of the URA, and the government will be advised to exercise relevant rights only after negotiations reach a certain level.
He also pointed out that after accumulating experience in these two pilots, he hopes to conduct surveys of civil service cooperatives in Hong Kong to understand their willingness to rebuild, and then advise the government on the long-term development of the cooperatives.
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