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The Government dismisses today (May 24) as erroneous and misleading suggestions that the estimated unit construction cost for the Tamar development project is higher than that for the International Finance Centre (IFC) Two.
The comparison failed to take into account the fact that the development project covers not just construction of the Legislative Council Complex and the Central Government Complex, but also a 2-hectare open space, drainage and related works in the open space and two covered pedestrian footbridges. The latter items should not be counted into the unit construction cost. Besides, it should not be assumed that the contingency provision for the entire project would necessarily be spent or indeed spent on building works.
As explained in the paper for the Public Works Subcommittee, the estimated unit construction cost for the Tamar development project (around $11,600 per m2) is lower than the market comparator for Grade A office buildings (about $13,000 per m2). When quoting the market benchmark, the Government has drawn reference to the regular professional surveying updates published by Levitt & Bailey and Davis Langdon & Seah.
The Government has no basis to verify the figures quoted for the IFC Two development. In any event, given the wrong analysis on the Tamar development project, the Government cannot agree with the conclusions drawn.
Ends/Wednesday, May 24, 2006
Issued at HKT 21:33
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