The finance house behind the Silicon Harbour proposal gave a veiled warning yesterday it would scrap the US$1.2 billion (HK$9.3 billion) microchip-making project if the Government did not endorse it by the last quarter of the year.
Unless the administration agreed to tax incentives and favourable land lease by then, the schedule would be delayed and it would be difficult to proceed, Hambrecht & Quist Asia Pacific managing director Clarence Teng said.
The warning came as the Government was understood to be taking a more positive view of the project.
'We hope the Government will approve it by the fourth quarter,' said Mr Teng. 'Hong Kong has advantages and disadvantages. There are alternatives [to the SAR] to consider. Both sides are well aware of the end-of-the-year time frame.' He did not disclose the exact concession terms Hambrecht & Quist expected from the Government.
The project would require 200 hectares of land under the Hambrecht plan - about four times the size of the Cyber-Port in Pokfulam where construction begins next month.
Proposals include building the project at Tai Po Industrial Estate and Tseung Kwan O but no firm location has been established.
The Cyber-Port project targets software, multimedia content production and Internet-based services.
