For discussion
on 15 January 1999


Subhead 600 Works
New item "Demolition of six Temporary Housing Areas"

    Members are invited to approve a new commitment of $24.4 million for the demolition of structures in six Temporary Housing Areas.


We need to clear six Temporary Housing Areas (THAs) to improve the living conditions of those affected and to demolish the remaining vacant structures to release land for development.


2. The Director of Lands (D of L), with the support of the Secretary for Housing, proposes to create a new commitment of $24.4 million for demolishing structures in six THAs, namely Tsing On, Kai Lok, Kai Wo, Kai Yiu, Sha Kok Mei and Long Bin upon completion of the clearance exercise.


3. The Government has pledged in the 1997 Policy Address to clear the remaining old-style THAs by 2000 by rehousing eligible clearees in public housing, including interim housing, in order to improve the living conditions of those affected and to release land for development.

4. As the manager of Government land, D of L is responsible for taking forward the demolition and clearance of the remaining structures in the six concerned THAs situated on Government land for which a restoration clause is not included in the land allocation conditions. He will act as the controlling officer for the funds to be expended on the demolition work. Being the rehousing agent, Housing Department (HD) will act for D of L in commissioning the demolition work and will provide project management and supervision services. Since the affected occupants might vacate individual units at different times, HD would patrol regularly the vacated structures to minimise fire risk, unauthorised re-occupation, hygiene and security problems. Demolition work will be carried out as soon as all occupants have moved out to ensure that the structures will not be converted into illegal use or become a fire hazard or public nuisance. Early removal of vacant structures will also minimise the need for regular patrolling.


5. At an unit rate of $120,000 per duplex block (at September 1998 prices), the total demolition cost of 139 duplex blocks (each of 20 x 100 feet) at the six THAs is estimated to be $24.4 million, with the following breakdown -

($ million)
($ million)
(a) Demolition cost

  • Kai Lok
46 6.62
  • Kai Wo
10 1.44
  • Kai Yiu
11 1.58
  • Tsing On
6 0.86
  • Sha Kok Mei
51 7.36
  • Long Bin
15 2.16

(b) Contingencies
(8% on (a))


Sub-total 21.61
(at September 1998
price level)

(c) Inflation allowance


Total 24.36
Say $24.4 million


6. The above costs include that of hiring contractors for the demolition work and 20% on-costs charged by the Housing Authority to cover site management, site security, tendering, contract documentation, project management and supervision services provided by HD. The demolition work comprises the following items -

  1. demolition of superstructures such as vacated THA blocks, public latrines, pump houses, meter rooms, transformer rooms and refuse collection points;

  2. making good the ground level such as grubbing up of footings, surface channels, drainage, foundations and levelling of sites;

  3. disconnection of public utilities such as fresh water and flush supply, fire services and electricity supply;

  4. removal of resulting debris; and

  5. fencing up of the cleared site.

7. Subject to Members' approval, we will phase the expenditure as follows -

Year $ million
(September 1998)
Price adjustment
$ million
1999-2000 0.47 1.06500 0.50
2000-2001 21.14 1.12890 23.90

Total 21.61



8. THAs, an early form of interim housing, provide accommodation for people who are rendered homeless for one reason or another but are not immediately eligible for permanent public housing. Since these THAs comprise old-type low-rise timber structures, the living environment is not satisfactory. Over the years the Government has been making efforts to improve the living environment of the residents. All the THAs built before 1984 have been cleared.

The remaining THAs will be cleared by 2000 and replaced by interim housing, which includes multi-storey concrete blocks and prefabricated interim housing blocks.

9. The Government will make sure that nobody would be rendered homeless as a result of the clearance operation. Eligible clearees will receive ex-gratia allowances in accordance with the prevailing criteria and allowance rates. They may also be rehoused to public housing including interim housing according to their eligibility. Details of the clearance programme of the six THAs are at the Enclosure.


Housing Bureau
January 1999

Enclosure to FCR(98-99)65

Clearance Programme of Six Temporary Housing Areas (THAs)

Name of THA Estimated number of blocks Estimated number of households Estimated number ofpersons Completion
date of site
reception estate
(Anticipated completion date)
Tsing On 6 153 399 December 1999 Lei Muk Shue and Kwai Shing East Estates, Kwai Chung (December 1999 and May 1999)

Kai Lok 46 667 1 901 April 2000 Tsz Ching Estate, Tsz Wan Shan (May 1999)

Kai Wo 10 150 376 April 2000 Tsz Ching Estate, Tsz Wan Shan (May 1999)

Kai Yiu 11 144 423 April 2000 Tsz Ching Estate, Tsz Wan Shan (May 1999)

Sha Kok Mei 51 946 2 359 May 2000 Sheung Tak Estate, Tseung Kwan O (January 1999)

Long Bin 15 503 920 June 2000 Tin Shui Wai Area 30 (October 1999)

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Total 139 2 563 6 378

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