Tender awarded for short-term tenancy of Central Harbourfront Event Space
The Development Bureau (DEVB) announced today (April 23) that the short-term tenancy of the Central Harbourfront Event Space (Event Space), covering an area of about 3.7 hectares, has been awarded to Central Grand Limited (CGL), a joint-venture company formed by Henderson Land Development Company Limited and YW Company Limited, for a fixed term of five years commencing on July 1. CGL shall manage and maintain the Event Space for the hosting of events pursuant to the strengthened terms and requirements on venue management.
A two-envelope approach was adopted in the tender exercise, with the technical proposal weighted at 70 per cent and the price proposal at 30 per cent. A total of six tenders were received. Upon assessment of the tenders on the proposed large-scale signature events, the number of days for commercial events and the number of free public events, as well as their commitments on various parameters including the arrangement on opening up the Event Space for free public enjoyment on days when no events are held, the tender is awarded to CGL which achieved the highest combined score for its technical and price components. During the tenancy term, the successful tenderer will pay the Government a monthly rental of $1,518,000 in accordance with its tender proposal.
After evaluating the six tenders, the Government considered that large-scale signature commercial events featured in the successful tenderer's proposal would best utilise the harbourfront resources and the site space, with a strong appeal to the public and visitors, and would also help promote a mega-event economy and enhance the vibrancy of the harbourfront. CGL’s proposal also outlines practical implementation plans, such as offering flexible package options during large-scale signature events as proposed in the tender proposal, which provide promotional information and discounts of other tourist attractions and gourmet hotspots in Hong Kong, with the aim of enhancing the overall appeal of the Event Space and extending visitors' stays in Hong Kong.
As regards space sharing, CGL will not only open up the Event Space to the public for free on days when no events are held in accordance with the tender conditions, but will also provide free facilities such as jogging trails or leisure facilities. In addition, even with ongoing commercial events or rehearsals, if more than one-third of the site area has no events taking place, CGL will implement flexible venue layouts and adaptive boundary arrangements to open up the non-event area for public use. Such flexible arrangements will enhance pedestrian accessibility and visual permeability of the harbourfront.
CGL is required to implement events and manage the venue in accordance with the undertakings in the technical proposal. A clause will be added in the new tenancy to the effect that if the actual number of event days held at the Event Space as rented out each year falls short of the commitment, the tenant is required to pay a compensation amount to the Government (equivalent to 10 per cent of the monthly rent of the Event Space for each day of shortfall). The arrangement aims to ensure the tenant would fully utilise the Event Space, and deliver on its commitments as stated in the tender proposal.
The Central Harbourfront Event Space is a significant landmark at Victoria Harbour and has hosted a multitude of large-scale outdoor events and performances over the years, gaining widespread popularity. The DEVB has refined the tenancy terms to encourage the successful tenderer to bring in a rich diversity of events and enable the public to better enjoy the unique appeal of the Central Harbourfront. Relevant terms include:
(1) While a two-envelope approach was adopted in this tender exercise, the weighting given to the technical proposal was increased from 40 per cent in the previous exercise to 70 per cent. The assessment of the technical proposals considered not only the diversity of events and their ability to enhance the vibrancy of the harbourfront, but also their appeal to visitors, so as to provide ongoing support for the mega-event economy;
(2) The fixed term of the new tenancy is extended from three years to five years, with a view to incentivising the successful tenderer to make long-term investments and planning as well as to deliver events with due emphasis on both quality and quantity;
(3) The successful tenderer is required to provide, within one year from the commencement of the new tenancy and on a regular basis, food and beverage facilities with a floor area of not less than 100 square metres in the northern part of the Event Space adjacent to the promenade area. Apart from synergising with the events to be held at the Event Space, the facilities would also provide service to harbourfront visitors outside the period of any particular events; and
(4) The requirement will continue for the tenant to run events for the public for at least about 30 per cent of days in its annual schedule. In addition, to avoid under-utilisation of the Event Space when no events or events relatively small in scale are taking place, if no less than about one-third of the Event Space remains unused for events or is left unrented for a period of three consecutive days or longer, the tenant is required to open that portion of the Event Space for public enjoyment and leisure activities free of charge.
Central Harbourfront Event Space, Photo source: reference image
