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Following is a question by the Hon Choy So-yuk and an oral reply by the Secretary for the Environment, Transport and Works, Dr Sarah Liao, in the Legislative Council meeting today (November 30) :
Question:
It has been reported that the construction costs of the facilities in Hong Kong Disneyland ("HKD") are excessively high, which casts doubt on whether the Government, being the major shareholder of the joint venture company of HKD, has closely monitored the relevant expenditure. In this connection, will the Government inform this Council:
(a) of the details of the construction costs of various facilities in HKD, to enable the public to assess whether such facilities are good value for money;
(b) of the criteria and procedure adopted for vetting and approving the estimated expenditure on the construction of the various facilities; and
(c) whether it will strengthen its efforts on monitoring the expenditure on the future extension works in HKD; if it will, how they will be strengthened; if not, the reasons for that?
Reply:
Madam President,
The financing of the Hongkong International Theme Park Limited (HKITP) comes to a total of HK$14.1 Bn, comprising equity injection made by the Government and The Walt Disney Company (TWDC), as well as loans provided by the Government and commercial entities. The portion related to the Government was approved by Finance Committee of the Legislative Council in 1999, and construction works of Hong Kong Disneyland were completed on schedule and within the approved financing arrangements.
According to HKITP, TWDC undertook the planning of all facilities in Hong Kong Disneyland with over 50 years' experience of building and operating theme parks. In doing so, TWDC has taken into account local circumstances whilst reflecting its own unique style and character. The construction materials and workmanship for every element within the park are subject to stringent quality standards to ensure that the design concept could be brought to life.
Hong Kong Disneyland is being run in accordance with the usual commercial principles and model of TWDC. In order to ensure that HKITP could secure the most favourable terms from contractors in future tendering exercises and that its bargaining position will not be affected, construction costs in the contracts should not be released.
During construction stage, the management company of Hong Kong Disneyland is required to report on work progress and expenditure to the HKITP Board of Directors. Under close monitoring of the Board, construction of Hong Kong Disneyland was completed on schedule and within the approved financing arrangements.
Ends/Wednesday, November 30, 2005
Issued at HKT 14:39
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