Page 71 - URA Annual Report 2020-21

Regenerating our dilapidating built environment is a race against time. The task is made even more challenging by financial constraints and the various regulatory regime which could not meet current and future development needs.
We therefore have to constantly reinvent ourselves to find creative and smart solutions to turn the finite (resources)
into the infinite (possibilities) and achieve seemingly impossible goals.
Our greatest challenge is the limited capacity for redevelopment, as urban districts are already densely populated with fully utilised plot ratios, making redevelopment projects financially unviable. Possibilities or opportunities will, however, present themselves if we think out of the box and adopt an innovative approach to the planning process, making the best use of latest technologies to maximise development potentials.
Other than the physical and planning constraints facing URA, another major challenge is the need to remain financially sustainable. Faced with market volatilities, we need to anticipate and minimise potential future risks. One solution is to build up planning reserves through Preliminary Project Feasibility Studies which will help identify potential renewal projects to build up a project reserve. Another initiative is the use of advance tendering for future projects; by this means, the acquisition of one project will match the timing of the tender award of another within the same financial year, as a way of fund hedging.
67