An official with the Planning Department declined to disclose details of the revised plan, but said: 'It is too early to say whether it [the development] could be approved or not . . .'

However, the latest strategic review on southwest New Territories development, which covers Lantau, recommends a cut in reclamation along Tai Ho Wan. This will reduce the population capacity under review by 18,000 to 476,700 by 2016, instead of the original target of about 490,000.

The original development submitted by Swire and SHKP was to build about five million square feet of residential floor area on 15 hectares of land at Pak Mong and Kwu Long, in Tai Ho.

They were believed to hold about 70 per cent of the agriculture land within the development area and so the proposal required a land-use conversion.

The Government has proposed new towns in Tung Chung and Tai Ho, northern Lantau, to accommodate 330,000 residents and which would involve large scale reclamation.

Pak Mong and Ngau Kwu Long were excluded from the strategic planning area.

In May last year, Swire and SHKP entered the fray with a counter-proposal for the southern part of the Tai Ho new town development, which involved a huge residential development with a total gross floor area of 12 million sq ft to accommodate 90,000 people.

The developers proposed to develop the coast of northern Lantau from Tung Chung to Tai Ho into an 'eco-town' providing housing and featuring an ecological park which would be managed by a trust fund.

They said their scheme would help reduce reclamation by 50 ha and allow better views of the Tai Ho Valley.

But the latest southwest New Territories strategic planning review has dealt a blow to their proposal.

It has found natural habitats in Tai Ho are worth preserving in preference to large-scale residential development.

Most of the land in Tai Ho is tentatively designated for conservation and country park.

The recently completed feasibility study by the Planning Department shows a new direction to balance development and conservation needs in accordance with the principles of sustainable development.

It lays the emphasis on turning the sub-region into a tourist, recreation and leisure centre by strengthening the tourist attractions, achieving conservation of the high-quality environment and meeting a diversity of recreation and leisure needs.

Tai Ho valley has been excluded from major residential development to protect the ecological significance of the Tai Ho stream system.

The Planning Department official said the latest proposal was still in broad outline and subject to further detailed studies by the Territory Development Department.

Although the Government has set a preliminary planning intention of preserving the natural environment in Tai Ho, the possibility for residential development remains.

Analysts cited the success of developers proceeding with residential developments in the vicinity of the Mai Po marshes in Yuen Long, which showed that development was possible in ecologically sensitive areas if sufficient mitigation measures were included.

Cheung Kong (Holdings) was given approval to develop properties in a wetland conservation area in Fung Lok Wai, near Mai Po.

However, it has to provide a further, detailed environmental impact assessment and to propose effective measures to ensure the development would have no adverse impact on the area's ecology.

The southwest New Territories study - which also covers Ma Wan, Lamma, Cheung Chau and Peng Chau - has designated about 1,174 hectares of residential land for development.

It is anticipated the housing development in northern Lantau, from Tung Chung to Tai Ho and Siu Ho Wan, could see 333,000 people accommodated there by 2016. This would be at a maximum plot ratio of 6.5, mainly in high-density private and public housing.

The study proposed applying 'stepped' building-height restrictions descending down to the waterfront to create an interesting silhouette of buildings against the mountain backdrop.

Northeastern Lantau will be developed into a tourist recreation centre with the Hong Kong Disneyland being built at Penny's Bay.

About 120 ha of land at the eastern part of the Chek Lap Kok Airport reclamation is reserved for commercial use - where a range of developments, including hotels, exhibition and convention centres, offices and an international logistics centre, are planned.

Mui Wo, on southern Lantau, is the island's largest rural township. According to town plans, Mui Wo can accommodate a population of 10,000 upon full development. Based on an initial assessment, Mui Wo is identified as having potential to accommodate some modest growth. A population level of about 17,000 is initially proposed.

The population target on the coastal area of southern Lantau is 14,000, against 25,000 for Discovery Bay. Ma Wan is intended to accommodate 15,000, Lamma to house 16,000, Cheung Chau 30,400 and Peng Chau 11,000.