Land Acquisition

When private property is needed in the public interest, mostly for the
implementation of public works projects, and cannot be acquired by
negotiation, it may be acquired under ordinances which provide for
payment of compensation, based on the value of the property, and for
business loss, where appropriate, at the date of acquisition. If agreement
cannot be reached on the amount payable, either party can refer the claim
to the Lands Tribunal for adjudication. Apart from statutory
compensation, there is a system of ex-gratia payments.

During 1997, about 359 000 square metres of private land in the New
Territories were acquired at a cost of $1.52 billion for public works
projects, such as the Phase II development of Tung Chung New Town on
North Lantau, the Shenzhen River Improvement Works in North District
and a number of village flood protection schemes in Yuen Long District.

On Hong Kong Island and in Kowloon, compensation of about $130
million was paid for land and buildings acquired during the year for public
works projects, such as open space developments at Lun Fat Street on
Hong Kong Island and Fung Tak Road Extension in Kowloon, as well as
road improvement schemes such as the improvement work for Lung
Cheung Road/Ching Cheung Road.

The Lands Administration Office was also involved in the resumption of
land for implementation of urban renewal schemes carried out by the
Land Development Corporation and the Hong Kong Housing Society.
More than 60 properties were resumed at a cost of about $1 billion in
1997.

A specialist section, called the Railway Development Section, was set up
in July 1997 within the department to deal with land aspects of various
railway projects. It has been working on the gazetting and land acquisition
for Phase I of the West Rail Project, which will eventually involve the
acquisition of about 1 300 private lots, and clearance of over 390 hectares
of government and private land. Phase I of the West Rail Project was
gazetted under the Railways Ordinance in October 1997.

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