The Environmental Protection Department has rejected a proposal for a joint residential-commercial project in Yau Tong Bay submitted by Henderson Land Development, New World Development and Wheelock and Co. The developers failed to convince the Government that their proposed mitigation measures were sufficient to resolve the environmental problems relating to the 28.5-hectare development. With a floor area of 10.54 million square feet, the project was required to submit an environmental impact assessment report for approval. However, the Environmental Protection Department rejected the report. It said the developers failed to address a polluting source - neighbouring shipyards which might continue operations for a long period - that would cause air and noise nuisances. The problem of interfacing the residential and industrial premises would be extremely difficult to mitigate, it said. The department also criticised building heights, rising from 125 metres to 200m, which would exceed the 125m limit under the Central and East Kowloon Development Statement. Henderson, New World and Wheelock each hold a stake of 10 per cent to 20 per cent in the project, which comprises 39 residential towers and two commercial buildings. Sun Hung Kai Properties, Swire Properties, Hang Lung Development and Shun Tak Holdings are also partners. The project involves rebuilding shipyards in Yau Tong Bay and reclaiming 18 hectares of the seabed. It will be the largest urban redevelopment in two decades, with a size comparable to Taikoo Shing in Quarry Bay and Whampoa Garden in Hunghom. The project is said to be vulnerable to air quality and noise impact from 31 chimneys in the adjacent Yau Tong industrial area, the emission from ventilation shafts of Eastern Harbour Crossing and increased traffic at surrounding roads. As part of mitigation measures, the developers proposed to set residential buildings back from the pollution source and roads. It would build schools, office towers, a shopping arcade and landscape garden as buffer to traffic noise from Cha Kwo Ling Road, Ko Fai Road and future Western Coast Road. The developers said they would incorporate good quality windows in residential units and install noise barriers to achieve better insulation.