After a review of public spending priorities, the Government has decided to defer the Tamar development project.

Keeping the prevailing political climate in mind, and taking account of the Government's financial position, the Government has terminated the procurement exercise for the design-and-build contract for the project.

The Government does not feel that it would not be in the public interest to proceed with this project, given the current and forecast budget deficits. Nevertheless, the longer-term plan to develop the Tamar site as Hong Kong's prime civic core - with the central Government complex and the Legislative Council complex being the integral components - remains unchanged.

Tamar a low priority compared with other projects

The Tamar project, however, is considered to be a low priority compared with other major infrastructure projects, following a critical review of the capital works projects in the pipeline and other initiatives.

Continuing the Tamar development project would put pressure on the Government's financial position. Its estimated cost is $4.85 billion, and would entail building a new central Government complex, a new Legislative Council complex, an exhibition gallery and a civic place.

The decision to defer the Tamar project will not affect those Government office building projects that have already secured funding approval from the Finance Committee.

History of the project

The Government embarked on a two-stage tender exercise in April 2002, with a view to selecting a contractor for the design-and-build contract. The prequalification stage for tenders was completed in December 2002. Following the SARS outbreak, the Government announced in May that it was putting the Tamar project on hold, to complete a six-month review of public spending priorities.

As the Tamar site will continue to be reserved for the reprovisioning of the Central Government Offices and the Legislative Council Building, the Government will in the meantime consider proposals only for the short-term use of the site.