The Government announced that the Kai Tak cruise development project will be re-tendered as submissions received in the previous exercise did not conform with requirements.

     Unlike conventional commercial development, the cruise terminal project requires extensive site formation works and the provision of government facilities such as customs, immigration, health quarantine and police facilities for cruise terminal operation and a landscaped deck. The Government will seek Legislative Council approval to fund the site formation works for, and the construction costs for government facilities in, the cruise terminal project. The estimated cost ranges from HK$1.8 billion to HK$2 billion.

     Subject to lawmakers' approval, the Government will re-tender the site by year's end, aiming to award the tender by the third quarter of 2009. The first berth of the new cruise terminal is expected to begin operation by the second quarter of 2013.