Page 12 - URA Annual Report 2020-21

CHAIRMAN’S STATEMENT
(1) Planning Reserve
(2) Project Reserve
(3) Financial Reserve
Making Urban Renewal Sustainable
Building reserves for long-term development
In the long run, facing the challenges of lengthy development cycle, high acquisition costs and slow cash flow return, the URA must, in order to effectively implement its long-term ‘5Rs’ strategies for urban renewal, forge ahead with four other initiatives to prepare itself for the future, namely:
Planning Reserve
To identify urban land with restructuring and replanning potential
Project Reserve
Consists of projects ready for inclusion into the Corporate Plan, allowing the URA flexibility in project implementation in response to possible changes in the property market and economic environment
Financial Reserve
A robust and flexible financial system that enables sustainable urban renewal
Regulatory Review
To study the introduction of new planning tools to optimise the potential of land
8
URA ANNUAL REPORT 2020-21
Over the past two years, the URA has conducted extensive planning studies in old districts including Yau Ma Tei, Mong Kok, Sham Shui Po, Kowloon City, Wong Tai Sin and Hong Kong Island East, covering reviews on the building conditions, land use, road planning and pedestrian environments in these areas. We have identified over 250 hectares of urban land with restructuring and replanning potential. Preliminary feasibility studies have been completed for some sites, which will be upgraded into the ‘Project Reserve’ for detailed design and technical study.
Besides redevelopment opportunities, the Planning Reserve also provides an overall planning basis for comprehensive urban renewal strategies integrating redevelopment, rehabilitation, preservation, revitalisation, and retrofitting, with a view to substantially improve the environment of old districts and the living standards of local residents.
So far, URA has ten projects in its Project Reserve, covering areas of more than 100,000 square metres for about 15,000 flats. Preliminary technical studies have been largely completed for these projects. They can be included into the Corporate Plan and submitted to the Government for approval in due course.
The establishment of a comprehensive Project Reserve allows URA the flexibility in project implementation in response to possible changes in the property market and economic environment, so as to reduce the impact of market fluctuations.
To implement the projects in the reserve systems and enable sustainable urban renewal, the URA must establish a robust and flexible financial system which can be used to assess the URA’s liquidity needs by taking into account factors such as cash flows, volatilities in the property market and changes in the external economic environment. In this way, we can formulate appropriate financial plans and choose the best time to start projects.
We will make good and full use of resources to take forward various urban renewal plans and projects, including exploring alternative funding opportunities. When necessary, we will raise funds in the financial market to pursue our objective.