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The Government announced today (November 19) its decision to defer the Tamar development project pursuant to a review of public spending priorities.

"Having regard to the prevailing political climate, and taking account of the Government's financial position amid the outbreak of Severe Acute Respiratory Syndrome, the Government has decided to defer the project. The procurement exercise for the design and build contract for the project is hereby terminated," a Government spokesman said.

"Given the current and forecast levels of budget deficits, the Government considers that it would not be in the public interest to proceed with this project. Nevertheless, the longer-term plan to develop the Tamar site as Hong Kong's prime civic core, with the Central Government Complex and the LegCo Complex being the core and integral components, remains unchanged," he added.

"The Government has critically reviewed the capital works projects in the pipeline and other initiatives, and has come to the conclusion that the Tamar project is of a lower priority compared with some other major infrastructural projects. Continuing a project of such a large scale as the Tamar development project will put pressure on the Government's financial position."

The present decision to defer the Tamar project will not affect those Government office building projects that have already secured funding approval from the Finance Committee.

The estimated cost of the Tamar development project is $4.85 billion. The project comprises the development of a new Central Government Complex, a new Legislative Council Complex, an Exhibition Gallery and a Civic Place at the Tamar site. The Government embarked on a two-stage tender exercise in April 2002, with a view to selecting a contractor for the design-and-build contract. Stage one of the prequalification stage for tenders was completed in December 2002. Following the SARS outbreak, however, the Government announced in May to put the Tamar project on hold, and to complete a review of public spending priorities in six months before the end of November.

As the Tamar site will continue to be reserved for the reprovisioning of the Central Government Offices and the Legislative Council Building, the Government will in the meantime only consider proposals for the short-term use of the site.

Ends/Wednesday, November 19, 2003

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