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Annualreport 2 0 pReservation Revitalisation Rehabilitation Redevelopment d e A ll Ch ti 0 al R b s U a d o annual report 2008-2009 Contents Introduction to URA --------------------------------------------------- 2 URA’s Environmentally Sustainable Policy ------------------------ 4 Preservation in Action ------------------------------------------------- 6 Rapid Progress on Kwun Tong Project ----------------------------- 8 Highlights of the Year -------------------------------------------------- 10 Chairman’s Statement ------------------------------------------------- 16 Managing Director’s Statement ------------------------------------- 22 Operating Review ------------------------------------------------------ 30 URA Project Highlights ----------------------------------------------- 66 Management Discussion and Analysis ----------------------------- 70 Corporate Governance ------------------------------------------------ 74 Members of the Board and Profiles --------------------------------- 78 Members of Committees ---------------------------------------------- 88 Organisation Structure ------------------------------------------------- 90 Members of District Advisory Committees ------------------------ 92 Financial Highlights --------------------------------------------------- 95 Report of the Members of the Board ------------------------------- 96 Auditor’s Report --------------------------------------------------------- 98 Consolidated Income and Expenditure Account ---------------- 100 Consolidated Balance Sheet ----------------------------------------- 101 Authority Balance Sheet ---------------------------------------------- 102 Consolidated Cash Flow Statement -------------------------------- 103 Consolidated Statement of Changes in Equity ------------------- 104 Notes to the Financial Statements ---------------------------------- 105 Introduction to URA Establishment The Urban Renewal Authority (URA) was established under the Urban Renewal Authority Ordinance (URAO) in May 2001 to replace the Land Development Corporation as the statutory body to undertake, encourage, promote and facilitate the regeneration of the older urban areas of Hong Kong. Purposes The main purposes of the URA, as listed in Section 5 of the URAO, are to - • improve the standard of housing and the built environment of Hong Kong and the layout of built-up areas by replacing old and dilapidated areas with new development which is properly planned and, where appropriate, provided with adequate transport and other infrastructure and community facilities; • achieve better utilization of land in the dilapidated areas of the built environment of Hong Kong and to make land available to meet various development needs; • prevent the decay of the built environment of Hong Kong by promoting the maintenance and improvement of individual buildings as regards their structural stability, integrity of external finishes and fire safety as well as the improvement of the physical appearance and conditions of that built environment; and • preserve buildings, sites and structures of historical, cultural or architectural interest. Vision and Mission and 4Rs Vision - To create quality and vibrant urban living in Hong Kong - a better home in a world-class city. Mission - To realize our Vision, we act on our priorities with ingenuity and sensitivity, join forces with our partners and nurture our people. 4Rs Strategy - Our priorities are – In renewing urban areas, we implement • To accelerate redevelopment by replacing old our four priorities in a coordinated and buildings with new to provide a better living mutually reinforcing manner through our environment and neighbourhood; holistic 4Rs Strategy, comprising – • To enable and encourage the rehabilitation of dilapidated buildings to prevent urban decay; • building Redevelopment; • To preserve by maintaining and restoring buildings • building pReservation/Restoration; of historical and architectural value, and to sustain • building Rehabilitation; and local characteristics; and • street and open space Revitalisation/ • To revitalize through enhancing and strengthening Rejuvenation, the socio-economic and environmental fabric for in order to provide the maximum benefit the benefit of our urban communities. to the urban communities of Hong Kong, which we serve. 2 Introduction to URA Urban Renewal Strategy and Work of this Review. Until such time as any new URS is issued, URA the URA will continue to be required to follow the 2001 URS in carrying out its work. Section 20 of the URAO requires the Secretary for Development to consult the public in preparing an Urban Renewal Strategy (URS). Finances The URA is required to follow the guidelines in the current The resources of the URA are defined in Section 10 (1) of URS each year, when preparing our five-year Corporate the URAO and include both the $10 billion appropriated Plan for urban renewal under Section 21 and our annual by the Legislative Council and paid to the URA and all Business Plan under Section 22 for submission to the other money received by the URA. Financial Secretary for approval for implementation. One of the 2001 URS’s objectives is for the urban renewal The current URS was issued in November 2001 by programme to become self-financing in the long run and the then Secretary for Planning and Lands. Since then, URA must have due regard for this. In addition, URA is the URA has been carrying out its work in accordance required by Section 10 (4) of the URAO to exercise due with its obligation to continue implementation of 10 care and diligence in handling its finances. ongoing projects inherited from URA’s predecessor, the Land Development Corporation and the priorities set URA’s borrowing and lending powers are set out in out in the 2001 URS, which required the URA to give Sections 11 and 12, while Section 14 governs the use, priority to implementation of 25 new redevelopment including the investment, of any surplus funds. only announced but not commenced by the Land Development Corporation. All of these 25 projects Section 15 (1) states that the URA is indebted to the had been commenced by March 2008. In addition, the Government for all of the $10 billion received under Government gave the URA a list of 200 further projects Section 10 (1) (a) and all expenditure incurred by the for redevelopment. These obligations have defined the Government for the URA’s benefit. URA’s redevelopment portfolio and priorities to date. Sections 16 and 17 require URA to keep proper accounts, The 2001 URS is now being reviewed by the Secretary while Section 18 requires URA to, each year, prepare in consultation with the public over a two-year period and submit both an annual report on its work together which began in mid-2008 and will continue into 2010. with its audited accounts to the Financial Secretary who, As a major stakeholder, URA is proactively supporting in turn, is required to arrange for them to be tabled in the Secretary in the Development Bureau’s conduct of the Legislative Council. URA’s Environmental Commitments • To plan, design and implement projects in such a way as to minimize the adverse environmental effects of We aim at creating an environmentally-sustainable, new developments in construction, operation and high quality and vibrant urban environment providing demolition. better homes in Hong Kong through our 4Rs strategy. • To provide and promote environmental education and training. We are committed to the following: • To work with our partners (affected communities, • To meet all relevant regulatory and legislative tenants, owners, Government, development and requirements. financial institutions, professionals and academics) to • To reduce consumption of resources (materials, fuel find acceptable solutions which minimize our impact and energy) by efficiency, reuse, recovery or recycling on the environment and prevent pollution. where feasible and consequently reduce waste. • To communicate our environmental objectives, efforts • To adopt technologies and use raw materials which and achievements to the public. minimize pollution, energy use and waste where • To adopt “green” purchasing where appropriate and applicable. expect high environmental standards from suppliers, joint venture partners and contractors who work with or for us. 3 Water Conservation Greening Environmentally- friendly Building Energy Efficiency Materials Reduction of Construction Waste and Environmental Nuisance Facilities for The URA has announced in May 2009 that it will Collection of lead by example and adopt a policy on six main Recyclable Waste environmental provisions emphasizing energy efficiency, water conservation, environmentally-friendly building materials, greening, collection of recyclable waste and reduction of construction waste and environmental nuisance during construction in its projects. URA’s Environmentally Sustainable Policy We have already used some of these elements to good effect in our projects. This has won us four HK-BEAM platinum ratings, the highest distinction possible, for the environmental sustainability of four of our projects: Mount Davis 33 in Kennedy Town, Vision City in Tsuen Wan, i-home and Florient Rise in Tai Kok Tsui. 4 Hong Kong’s buildings are using more electricity than they should and they generate a large quantity of greenhouse gas. The city has more than 40,000 buildings and another 500 to 600 new ones are going up every year. These buildings eat up nearly 80% of our electricity, and in the process they produce about half of Hong Kong’s total greenhouse
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