The Housing Bureau of the Hong Kong SAR Government submitted a paper to the Legislative Council yesterday, disclosing more details of the "Simple Public Housing" projects, including the construction cost, expected construction and completion dates of the first four projects.

The largest of these projects, at Sai Wan Road in Kai Tak, will cost $9.5 billion in construction and related works, and construction could begin in the first quarter of next year at the earliest, with the first phase to be completed in the first quarter of 2026.

Government sources said that although it would take a short time to find land, build and provide 30,000 "simple public housing" units, the project would not be "rushed" and would ensure that the quality of construction met the standards.

As for the disagreement over the World Runner Road project, sources said that the site was already the most desirable in the neighbourhood for a "simple public housing" project, but that local consultation would continue.

The Housing Bureau's paper estimates that the total five-year operating cost of the first batch of 17,000 flats will be around $2.5 billion.

The Housing Bureau will seek $14.91 billion from the Finance Committee of the Legislative Council for the construction of the first four projects and pre-construction works for the remaining four projects, which will create about 2,700 jobs.

According to the paper, upon funding approval, the works contracts of the projects will be carried out in strict accordance with the Government's established procedures and requirements, and the Housing Bureau will report regularly to the Legislative Council on the progress, financial and operational aspects of the projects.

Among the first batch of four projects, the Yau Pok Road project in Yuen Long, which will provide about 2,100 flats, is expected to be completed first in the first quarter of 2025 at the earliest.

It is estimated that the first batch of four projects will generate a total of about 168,000 tonnes of construction waste, of which 8.2% of inert construction waste will be reused on site and about 74.5% of inert construction waste will be delivered to public fill reception facilities for subsequent reuse, while the remaining 29,000 tonnes (17.3%) of non-inert construction waste will be disposed of at landfills at an associated delivery and disposal cost of about $14.7 million. The associated transportation and disposal cost is about $14.7 million.

The Secretary for Housing, Mr Ho Wing-yin, has pointed out that the latest estimate by the Architectural Services Department (ArchSD) has reduced the design and construction costs of all eight projects from $26.79 billion to $25.99 billion, and the estimated cost of the additional infrastructure works from $600 million to $450 million.

The document further explains that the cost reduction is mainly based on further optimisation of the site and foundation works programme; reduction of renewable energy facilities to provide only energy efficient installations, etc.; and reduction of equipment to be provided in the units.

For example, under the latest estimate, it has been decided that no air-conditioners will be provided to households. According to the source, it was originally intended that two air-conditioners would be provided for some of the larger units, so a total of about 39,000 air-conditioners for 30,000 units would be provided at an estimated cost of about $5,100 each, thus saving about $200 million.

Government sources also stressed that the cost of each unit cannot be calculated by dividing the construction cost of the project by the number of units, as peripheral factors, such as the cost of ancillary facilities, have to be excluded in general public works projects.

As for the total expenditure of $2.5 billion for the first batch of four projects over a five-year period, sources said it was arrived at by taking into account the costs of management, maintenance and provision of community services of the existing NGO "transitional housing" projects. The Housing Bureau will communicate with stakeholders on the operational arrangements of the projects and work out the details, which will be announced in due course.

Speaking to Hong Kong Wen Wei Po yesterday, Ms Sze Lai-shan, Deputy Director of the Society for Community Organisation, who has experience in running transitional housing projects, said that the operating costs of the projects were indeed high, and it was not difficult to provide community services, but for our project, which has over 300 people in 40 households, the monthly management fee alone is more than $100,000, not counting the maintenance costs.

In response to some local opposition to the Kai Tak site, the source said that the views of stakeholders were taken seriously and that the long-term use of the site would remain unchanged and would not delay the original development schedule.

The source also said that the site is far away from existing residential areas, such as Station Square to the south, with other residential developments more than 140 metres away, and the Longjin Stone Bridge Conservation Corridor to the west, describing it as the most ideal and suitable site in the district.

As to whether the Kai Tak project will be the reason why the New Territories project has been neglected, the source said that it is a personal choice and that rents in the New Territories are relatively cheap.

However, if a Simplex tenant declines the opportunity to be allocated a traditional PRH flat for three times under the current mechanism, he or she will be required to move out of the Simplex flat within a reasonable period of time and will not be given another chance to move up.