A repeat of the Cyberport saga does not begin to describe the West Kowloon cultural district project. For a start, it is twice the size of the Cyberport. Not only has the principle of fair competition been violated, just as in the Cyberport case, but the government has set a precedent by putting itself above the current planning process.
The Tung administration plans to hand the $24 billion project to a single consortium which will develop the 40-hectare site and run it for 30 years, on the grounds that profits from commercial and residential developments would be needed to subsidise the cultural facilities. This has resulted in unfair competition.
The invitation for proposals for the development contains requirements which only the two largest developers in Hong Kong can meet. It says that the consortium or joint venture company should have relevant, direct experience within 15 years in building at least one development with a total construction cost of not less than HK$3 billion, and managing office space with a total gross floor area of not less than 250,000 square metres. It also requires the participants of a consortium to be liable for their performance.
By making the Town Planning Board amend the draft South West Kowloon outline zoning plan to provide greater flexibility for change of use, and reduce the need for a planning application, the government has set a bad precedent in bypassing the usual town planning processes.
The mega project is a land sale, and therefore is out of the Legislative Council's control, as no approval of funds, nor amendment of legislation, is needed. Thus, another Cyberport or cultural district can be created in the same way, by making it part of a land-sale programme.
The subsequent policymaking process, following the Town Planning Board's amendment, will be a black hole. The lack of transparency, together with the requirements in the invitation for proposals, has given rise to fears that the administration is working against the principle of fair competition. While the Town Planning Board usually sets the maximum plot ratio of a site, the invitation for proposals sets only the minimum ratio.