A land premium worth $350 million will be waived when developers are asked to build the athletes' village for the Games, a government economist estimates. About 100 civil servants will also have to be deployed, incurring an extra cost of around $343 million. Both figures quoted were in current-year prices and thus less than the estimated 2006 cost forecast by KPMG Consulting. About 11,000 athletes would require accommodation for the Games. It said developers should be invited to compete by tender for a residential project which would be suitable for use initially by athletes. After hosting the Asian Games and the Far East and South Pacific Games for the disabled, the accommodation would be sold. The developer would be exempt from land premium charges payable when there is a change in land use. KPMG estimated about $378 million in land premium revenue at 2006 prices would be lost as a result. Government economist Tang Kwong-yiu put the figure at $350 million. Factors to be considered when assessing tenders would include the premium figure, costs attributed to the village, and quality of the village proposals. A government source said officials had considered using existing apartments, university dormitories or asking the Housing Authority to develop new flats to provide accommodation for the athletes. 'We were worried it might affect people who are on the waiting list for public housing. Seeking a private developer to develop a new estate is the best and most cost-effective way.' The site would have to provide shops, a postal service, areas for light physical exercise and cultural and recreational activities. 'There are no existing venues that can meet these requirements,' the source said. KPMG estimated about 100 public sector staff, costing $400 million at 2006 prices, would have to be redeployed for the Games. The Government put the figure at $343 million at 2000 prices. The source said the redeployment would not affect normal services. The Home Affairs Bureau said in a paper to legislators 'the community at large will not suffer from a reduced supply of public services, and the economy will not sustain a net loss in output'. Most of the civil servants would be drawn from the Leisure and Culture Department and work full-time on the event at different stages. Democrat legislator Lee Wing-tat said the Government should make its assessment at prices of the same year. 'Otherwise, it is difficult to compare and judge,' he said. He also asked the Government to clarify how the figure for land premium waiver was reached. 'It may turn out to be more than that.'