'The Sino Land proposal was doomed to fail because it submitted the lowest land price,' he said.

Sino Land also submitted its award-winning Fullerton Hotel and Far East Square schemes in Singapore to demonstrate its expertise at preserving and reusing heritage buildings, while other bidders did not show relevant experience, the source said.

The revelation brought renewed calls from conservationists and architects for the government to revamp its marking scheme for such sites and consult the public on any plans that affect the city's heritage.

They said the incident also highlighted the urgency of tree protection and conservation ordinances.

The Tourism Commission awarded the tender to Cheung Kong (Holdings) in May 2003, giving it a 50-year grant for HK$352.8 million. Under the plan, the former Marine Police headquarters, a declared monument, will become a heritage hotel.

Cheung Kong was given permission to cut down numerous mature trees and raze the hill on the Tsim Sha Tsui site to build a three-storey podium shopping centre.

Land premium, given a one-quarter rating in the assessment scale for the project, scored a maximum 25 points in the Cheung Kong proposal. Companies had to score at least 13 in each of four sections.

Vincent Ng Wing-shui, a vice-president of the Hong Kong Institute of Architects, said: 'The problem was the government gave too much emphasis to how much the developer was prepared to pay.'

He said if the marking scheme did not change, the Central police station compound would share the same fate.

'The marking scheme reflects that the government wanted to make a profit,' said Ng Cho-nam, director of the Conservancy Association. 'But it is a short-term gain. Officials forget there are public goods and social gains in preserving the historical site.'

Dr Ng, an associate geography professor at the University of Hong Kong, said: 'If it is a real conservation programme, Cheung Kong needs to justify every little action. But our experience of fighting for the preservation of trees shows the situation is the other way round - we had to justify our objections. It is a development project by default.'

Dr Ng hoped similar schemes in future would have maximum public participation. 'The entire exercise was conducted in a black box. The whole deal was done between the government and the developer. But heritage belongs to everyone in Hong Kong. The government and the developer have no right to monopolise its future.'

Conservationists have asked officials to explain why Cheung Kong (Holdings) has been allowed to wipe out the original landscape at the former Marine Police headquarters site in Tsim Sha Tsui and transplant century-old trees into huge pots.

Academics and cultural experts say the work under way behind high walls at the heritage site is causing 'irreversible damage' and creating 'another Park Lane' - the string of shops that cut Kowloon Park off from Nathan Road.

Artist Anson Mak Hoi-san has made a video on the state of the site and plans to put it on the YouTube website to raise public awareness. The two-and-a-half minute video compares the heritage site before the tender was awarded to its current state.

But the Li Ka-shing-controlled development giant insists the knoll on the site had to be removed to make way for a planned public piazza and the removal of the trees is temporary. This is despite the stated objectives of the project - to restore a colonial-era complex to an international standard to provide an exciting, economically viable development while preserving the setting and fabric of the historic buildings. The developer is also required to limit intervention on the site to ensure that future heritage value is not diminished by inappropriate and irreversible changes.

Cheung Kong has until March 2008 to complete the project. But the firm's development proposal indicates it may be completed early next year.

These are edited versions of articles by Chloe Lai which appeared in the November 6 issue of the South China Morning Post

Factbox

* The former Marine Police Headquarters was constructed in 1884, and it comprises a main building, stable block and signal tower.

* In the second world war, the compound was used as a base by the Japanese navy during the occupation of Hong Kong (1941-1945).

* During the Japanese occupation, extensive underground tunnels were constructed beneath the lawn, but, after the war, these tunnels were blocked and the grass was re-turfed for the safety of the public.

* The compound has been a declared monument since 1994, as it is one of the four oldest surviving government buildings in Hong Kong.

* It was featured in Jackie Chan's films, Project A (1983) and Project A Part II (1987).