TENDER OF MARINA SITE

Mr Kenneth Chen Koon Lap asked the Minister for National Development (a) what is the rationale for the Urban Redevelopment Authority to proceed with the tendering of the Marina site even though it is obvious that no meaningful tender can be expected during this economic crisis; and (b) whether the Minister will consider the option of allowing separate developers to bid for smaller parcels when tender is to be re-called in the near future, as long as they conform to the overall planning intention so that it may attract higher premiums.

Mr Lim Hng Kiang: When the Marina Boulevard site was launched for sale 6 months ago on 13th November 1997, the market conditions were very different from now. There was strong interest in the site. More than 70 developers' packets were sold and there were active queries by developers on the details of the site. Several architectural firms were asked by clients to look into the design of the development.

Although the regional economic landscape and our market conditions had changed considerably since then, there was still active interest in the sale site. Given that the interested developers had invested much time and money in studying the site, it would be unfair to them if the Government had aborted the tender. It would call to question the credibility of the Government's tender system.

Given the prominent location of the site and the fact that part of the parcel is affected by the MRT line, the size of the parcel is appropriate. However, in view of the current market conditions, URA will not re-tender the site this year. URA will review whether other smaller parcels at the New Downtown should be released instead, and when to do so.