November 03, 2005
Every now and again even Legco can cause a surprise. And so it was yesterday, when Frederick Ma gave detailed costings of the Government's investment in Hong Kong Disneyland and told a Legco committee the Government may privitise its stake:
Less than two months after Disneyland Hong Kong opened, Frederick Ma said Wednesday that the government could sell off its 57 percent share in the theme park."Big market, small government" in action:
Estimated spending on HK Disneyland by the HK SAR Government:
Reclamation and infrastructure works (roads, the Inspiration Lake Recreation Centre, decontaminating dioxin-laced soil and compensation to fishermen) = HK$13.6 billion
Land acquisition and clearance compensation = HK$1.6 billion
Equity injection into HKITPL = HK$3.3 billion
Loan to HKITPL = HK$6.1 billion
Waived claim to MTR Corp for dividends payable as support for the Disneyland Resort Line = HK$931 million
Total spent for HK$3.3 billion equity stake = HK$25 billion
Likely proceeds from privitisation, if Disney agrees (and I'm just guessing) = HK$3.5 billion
Combined with the repayment of the loan, total return to HK taxpayers = HK$9.6 billion
Total net loss to HK taxpayers = HK$15.4 billionposted by Simon on 11.03.05 at 09:54 AM in the Hong Kong Disneyland category.
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But the sale of Disneyland shares is in the contract. it's not like he just came up with the idea.posted by: donkey on 11.03.05 at 05:05 PM [permalink]
Do you have a copy of the contract? If so can you please send it to me.
The privitisation isn't really the point of this post. The point is even if they privitise the HK taxpayer is massively out of pocket on this park, having subsidised the whole edifice to the tune of HK$15 billion using the Government's figures.
It's a small world after all.posted by: Simon on 11.03.05 at 05:10 PM [permalink]