Hong Kong’s cash-strapped Urban Renewal Authority intends to adjust the pace of its projects to ensure better financial stability, while private developers will be briefed in advance on plans to avoid failed tenders.
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The changes, outlined by managing director Wai Chi-sing on Sunday, were aimed at helping the authority maintain adequate cash flow and avoid making expensive acquisitions.
“The current economic environment and property market conditions have brought many challenges to the financial soundness of the authority,” Wai wrote in a blog post on the authority’s website.
He said the authority had already delayed the tenders for some projects as it doubted developers would make bids given market conditions.
“This will inevitably affect the authority’s cash flow situation,” Wai wrote.
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Nevertheless, the authority would have to pay about HK$30 billion (US$3.85 billion) for acquisitions in the next few years for five government-approved developments, including the Nga Tsin Wai Road-Carpenter Road project in Kowloon City, according to the managing director.