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Following is the speech by the Acting Financial Secretary, Frederick Ma, at the Cyberport Project milestone ceremony today (August 9):

Jack, Robert, ladies and gentlemen,

It gives me great pleasure to join you today to celebrate an important milestone for the Cyberport Project - the first distribution of surplus proceeds from the project.

The Cyberport delivers important infrastructure in support of the Government's commitment to drive the development of information technology (IT) and creation of multimedia content in Hong Kong, and this is crucial to sustaining our position as a leading digital city in the region. I am gratified to see that the project is progressing so well. The Cyberport Portion has been completed and so far 29 IT and multimedia companies and organisations, including well-established multinational corporations, have leased office in Cyberport. The occupancy rates of Cyberport 1 and 2 are 71% and 96% respectively; and leasing of Cyberport 3, which was completed in April this year, is well in hand. It should be noted that many of the tenants are companies that have decided to launch their business in Hong Kong for the very first time. It is encouraging that a strategic cluster of IT and related companies and a critical mass of professional talents are being created in this flagship for our IT industry.

This project not only helps to promote the development of IT and multimedia content creation in Hong Kong, but also brings revenue for the Government as the proceeds from its ancillary residential development have so far already exceeded the construction costs of the whole project and the up-keep costs of the shared Cyberport facilities. The $1.67 billion received by the Government today are merely the first distribution of surplus proceeds, and have not been taken into account in the 2004-05 Budget Estimate. The Government will receive further proceeds once the remaining phases of the Residential Portion have been sold.

Last but not least, I would like to express my heartfelt thanks to all those who have contributed to the successful implementation of the Cyberport Project. I wish you all every success in your continuing endeavours.

Thank you.

Ends/Monday, August 9, 2004

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