Zen Pacific Civil Contractors, the piling contractor of two housing blocks in Sha Tin, has agreed to pay the Housing Authority $80 million in damages for defective piling works.

It is said in a joint statement that the amount is in excess of the net asset worth of Zen Pacific, and any sums relating to the project recovered by Zen Pacific from any sub-contractor or consultant will also be paid to the authority.

All outstanding issues between the two parties in relation to the project have also been resolved.