Two high-rise blocks in Sha Tin are to be torn down at a cost of $250 million after it was discovered most of the foundation piles were not sunk deeply enough.
An investigation by Housing Authority consultants said it would be too dangerous for repairs to be carried out and the work would cost between 70 and 80 per cent of the price of demolition.
The cost of pulling the blocks down is estimated at $250 million - $29 million for the demolition, $186 million spent putting them up again and the rest in possible compensation to other contractors.
The blocks were built under the government-subsidised Home Ownership Scheme.
The Housing Authority's Building Committee has accepted the demolition recommendation and the Housing Department will start a tendering process for the work soon.
'We cannot compromise safety,' said committee chairman Daniel Lam Chun. 'We hope we can restore public confidence in public housing.' The substandard piles were discovered in January at two blocks out of five in Yuen Chau Kok, Sha Tin, which had been built to the 34th of a planned 41 floors.
Eight people, including three Housing Department staff, were arrested by the Independent Commission Against Corruption on January 9 over the scandal. All have been released on bail.
