No one should feign surprise at the developers announcement that they would demolish the cheap flats of the Hunghom Peninsula project, build luxury flats in their place and make a bundle of cash.
If the truth be told, that is what the government would like to have done for themselves but realised it would not be allowed to by the hostile Legco. They could foresee the political obstacle in going to Legco to admit their mistake, then seek approval for the cheap flats to be demolished and to resell the site at a future land auction. Such a move could have potentially earned significant extra funds for the government.
Did the government not contemplate this option during negotiations before deciding to sell their rights to the project to the developers, incidentally for a meagre $864 million? If so, why did they not stipulate a simple clause in the settlement that in the event the developers wish to demolish the flats, they must first give the option to the government to repurchase the entire project. The price for the repurchase should be calculated on the same basis as the $1.9 billion guaranteed price for the residential flats under the original agreement.
Sadly, the government has blundered and once again let us down. In this instance their inexperience in such negotiations has gifted a massive windfall to some savvy developers.
Isn't it reassuring that in two months the government will use their considerable skills to again negotiate on our behalf on the $24 billion West Kowloon Cultural Hub project.
KIEN NG, Causeway Bay