The contractor of the Central Reclamation Phase III project has lodged a claim for $280 million compensation to the Government, Secretary for Housing, Planning & Lands Michael Suen says.

Responding to a question raised by Legislative Councillor Martin Lee today, Mr Suen said the contents of the claim concerned the delay and related expenditure resulting from the works suspension.

"According to the preliminary information provided by the contractor, the amount claimed is estimated to be $280 million, which is about 7% of the awarded contract sum."

The Territory Development Department has asked the contractor to provide detailed information and justifications, and will consider and process the claim in accordance with the established procedures.

Speaking on the development restriction of the project, Mr Suen said the developments in the existing Central waterfront are covered by the approved Central District (Extension) Outline Zoning Plan.