Hong Kong arts hub in need of extra HK$11.7 billion to complete construction of facilities
Lawmaker claims it’s a scam as calls to suspend or downsize controversial development are brushed aside with mismanagement denials
An extra HK$11.7 billion would be needed to complete the second and third phases of facilities at the West Kowloon arts hub, Chief Secretary Matthew Cheung Kin-chung said, despite the management body making a HK$5.9 billion profit over the years.
Lawmakers slammed the difference from the original estimated cost and the latest budget overrun, describing it as a scam, but calls to suspend or downsize the remaining portions of the development were dismissed.
During a meeting of a Legislative Council subcommittee to monitor the project yesterday, Cheung revealed the West Kowloon Cultural District Authority (WKCDA) had earned HK$5.9 billion since it was given a one-off injection of HK$21.6 billion in 2008. That represents an average annual return of about 3 per cent.
Deducting operating expenditure, the body’s reserves would stand at HK$20 billion by the end of the current financial year.
But HK$11.7 billion was still needed to complete the third batch of core arts and cultural facilities, namely a music centre and two theatres, as well as two theatres from the previous phase and other retail, dining and entertainment facilities.
The authority is also expected to run into operating deficit in the coming financial year – it is set to lose HK$1 billion by 2019 to 2020.