What is the composition of the Tender Assessment Panel? Are there any special arrangements for the Panel to have access to relevant expertise and independent advice?

The Tender Assessment Panel comprises representatives of the relevant Government bureaux and departments, including the Tourism Commission (TC), Civil Engineering and Development Department (CEDD), Architectural Services Department and Planning Department, who are professionals in their respective fields.

The Tender Assessment Panel would be underpinned by international experts appointed by the TC and CEDD. The experts will act as consultants and provide inputs to the Panel in cruise terminal operation and engineering aspects.

Independent advisors have been invited to advise the Panel on an ad personam basis. They are the Honourable Jeffrey Lam, Chairman of the LegCo Economic Development Panel, and Mr. Anthony Lau, Executive Director of the Hong Kong Tourism Board (HKTB), who will advise the Panel the tourism and marketing aspects of the tender submissions. We have also invited the Hong Kong Institute of Architects and Hong Kong Institution of Engineers to each nominate a member to advise the Panel on the architectural and engineering aspects.

In addition, the Independent Commission Against Corruption will participate as an observer to the Panel to ensure integrity of the tendering process and adequate safeguards against corrupt practices, and provide timely corruption prevention advice to the Panel, in light of the complexity of the tender.

Only about four months are allowed for the tenderers to prepare their submissions. Is the time allowed sufficient?

We have been keeping the market informed of the project requirements as they evolved since the announcement of the way forward for the new cruise terminal in October 2006. In particular, we have actively engaged the stakeholders in drawing up the proposed development parameters of the new cruise terminal. This should have facilitated the interested parties to start preparing their submissions early.

When will the Government award the tender?

The tender will be closed on 7 March 2008 after completion of the necessary statutory procedures, as required under the Environmental Impact Assessment Ordinance and the Foreshore and Sea-bed (Reclamations) Ordinance. We will announce the outcome of the tender once the relevant process has been completed.

Who can participate in the tender?

The tender is open to all tenderers who can meet certain minimum requirements in relation to their ability to put together a project team with the right experience and expertise.

What are the requirements for the tender? Must the tenderer form a joint venture with a cruise operator/cruise terminal operator?

Tenders must comply with all mandatory requirements otherwise they will be treated as non-conforming and will not be taken forward for further assessment. Among the mandatory requirements set out in Clause 8 of the Tender Notice, there are requirements that a tenderer must propose a project team with at least three full-time members who have each been employed in one or more specified functional divisions/areas in respect of cruise terminal(s) at a port with a minimum total annual throughput of 200 000 embarking and disembarking homeport passengers in 2004, 2005 and 2006.

The tenderer has to comply with the requirement set out in footnote 1 at page 3 of the Tender Notice that where a proposed project team member is not already a full-time employee of the tenderer at the date of submission of tender, the tenderer must submit a confirmation given by the proposed project team member that he/she undertakes to take up employment with the tenderer should its tender be accepted. In other words, a proposed team member must be an employee of the tenderer or agree to become an employee should the tender be accepted. Save for this, there is no mandatory requirement that the tenderer's organizational structure should be in any particular way, whether by forming a joint venture with a cruise operator/cruise terminal operator or otherwise. The proposed project team members can be secured through various channels, for example, direct recruitment from the market, and forming of joint ventures/partnerships, etc. According to a consultant of the Government, personnel with the required experience are available in port authorities, cruise terminal operators or cruise companies operating in the ports fulfilling the abovementioned requirement.

What is the expected land premium for the site and the construction cost for the development?

We do not wish to speculate on the amount of land premium to be proposed by the tenderers. The construction cost would hinge on the design of the new cruise terminal, which would be proposed by the tenderers.

What would be the transport infrastructure for the site? Would there be a plan to develop a bridge and/or a monorail linking up the site with Kwun Tong?

The Government aims to provide by end 2011 an access road connecting the southern part of the former runway with the existing Cheung Yip Street in Kowloon Bay to tie in with the commissioning of the first berth of the new cruise terminal and other developments, as appropriate, in the southern part of the former runway.

The Kai Tak Outline Zoning Plan has included, as a planning proposal, a bridge and a rail-based environmentally friendly transport system linking the runway to Kwun Tong. CEDD is carrying out further studies and assessments on this proposal.

Any reclamation involved for the development of the new cruise terminal?

The successful tenderer is required to construct an alongside berthing front along the south-eastern part of the lot boundary. No reclamation will be involved.

Can the public still access the harbour front after the development of the new cruise terminal? Is there any open space for the public to enjoy?

We are mindful of the community's aspiration to access the harbour front after the construction of the new cruise terminal. The Conditions of Sale include a Special Condition relating to making the landscaped deck (at least 22 000 m² ) in the new cruise terminal open to the public. This arrangement seeks to enable the public to continue to enjoy the harbour front.

When will the first and second berths be commissioned? Can the process be expedited?

The first berth is expected to be commissioned by February 2012. The commissioning date of the second berth would have to take into account a number of factors, including the cruise market situation and the diversion programme of the submarine gas pipelines in the seabed within the dredging zone by the Hong Kong and China Gas Company.

How would the Government ensure timely commissioning of the berths?

The timing of the commissioning of the berths is specified in the Conditions of Sale. To ensure the timely commissioning of the first berth, we shall require the successful tenderer to provide a bond of HK$75 million to guarantee its timely delivery of the first berth. The Government may call the bond if there is any delay in the commissioning of the first berth.

What kind of cruise vessels could the cruise terminal accommodate? Would the new cruise terminal be able to berth Queen Mary 2 and other mega cruise vessels?

We require the tenderers to submit proposals that have built-in flexibility to allow the berthing of different types and sizes of cruise vessels including mega cruise vessels (like Queen Mary 2) commissioned up to date, and meet the need of different operational modes adopted by cruise operators for different market segments.

How did the Government engage the public and the cruise market in drawing up the development parameters and the Service Agreement?

Since the announcement of the way forward for the new cruise terminal in October 2006, the TC has been actively engaging relevant stakeholders in drawing up the development parameters for the terminal. Based on market feedback, we prepared and uploaded an Explanatory Note (First Edition) onto the TC's website on 10 April 2007 for market comments.

The Explanatory Note has served as a basis for the TC to engage the cruise market, travel industry, relevant trade bodies and professional organizations. Based on market feedback as well as updated advice from cruise experts and engineering experts, we prepared and uploaded onto the TC's website on 9 August 2007 a Revised Explanatory Note (Second Edition) on the proposed development parameters for the new cruise terminal.

In addition, we prepared a Proposed Framework for a Service Agreement on the Operation and Management Aspects of the new cruise terminal and shared this with the market and the general public on the TC's website on 25 September 2007 .

We have taken into account comments received during these market engagement exercises in formulating the development parameters of the new cruise terminal.

How would the Government ensure the performance of the successful tenderer in operating the new cruise terminal?

For monitoring the services of the new cruise terminal, we shall require the successful tenderer to enter into a Service Agreement with the Government in respect of its service pledges for the operation and management of the new cruise terminal.

The Service Agreement will be co-terminous with the land lease, which is to last for 50 years. It will, inter alia, require the successful tenderer to -

Apart from the development of the new cruise terminal, what would the Government do to promote the development of Hong Kong as a regional cruise hub?

Both hardware and software development are equally important for Hong Kong to develop into a regional cruise hub. In this regard, we shall establish an Advisory Committee on Cruise Industry (ACCI) to solicit advice on measures to enhance cruise market development. It will bring together key players in the cruise market, tourism industry, and the HKTB.

The HKTB is also taking initiatives to promote Hong Kong's position as a regional cruise hub. For example, it participates in international cruise industry fora such as the Seatrade Cruise Shipping Convention (which is a major event held annually in Miami, the United States, for the senior executives of the cruise industry). It also invites the senior executives of cruise operators to visit and familiarize themselves with Hong Kong, etc.

Any plans for the Government to cooperate with neighbouring ports for joint promotion and itinerary development?

The TC has initiated discussion with the neighbouring coastal provinces, namely Guangdong, Guangxi, Hainan and Fujian, for joint promotion and itinerary development. It will look towards the ACCI for advice on how to further such cooperation efforts.

What is the expected economic benefit of the development of the new cruise terminal?

With the development of the new cruise terminal and appropriate marketing strategies, and depending on the market growth scenarios, market studies estimated that the economic benefits might reach HK$1.4 billion to HK$2.2 billion per annum by 2020. It might also support some 6,900 to 10,900 employment opportunities by 2020.

How did the Government draw up the marking scheme for the Tender Assessment Panel? What are the major considerations?

Our aim is to develop a world-class cruise terminal with state-of-the-art facilities which are user-friendly, and provide efficient and quality services. To this end, we have placed a higher weighting on the quality aspects, including the design of the cruise terminal and the operation and management aspects, than that on the premium proposals.

What is the distribution of the different land use in the 7.6 hectare (76,000 m² ) cruise terminal site?