The Development Bureau on Tuesday said allowing successful bidders of the Hung Shui Kiu pilot area to pay the land premium flexibly will ease their cash flow pressure. Tenders for the 11-hectare site, that includes three residential sites and three 'enterprise and technology park' sites, begins today and lasts for six months. A successful bidder can pay 25 percent of the land premium within 28 days of the tender announcement, and settle the remainder interest-free within three years. Permanent Secretary for Development (Planning and Lands) Doris Ho explained on RTHK how the government came up with the decision. "Even though the interest rate is showing a downward trend, it is still relatively high compared to its lowest level. This has put pressure on the cash flow of developers because our pilot site development is huge. We estimated that the investment amount would be between HK$10 billion and HK$20 billion," she said. "Such development is usually financed through loans. We think it would be beneficial to help them with cash flow issues in terms of land premium." She went on to say that as the pre-sale of first-hand properties can begin around three years later, tenders would have a certain amount of funds by then to settle the land premium. Even though the government will take longer to receive the revenue, it shows the administration is willing to shoulder the development and financing risks with developers, Ho added. As for the establishment of Hung Shui Kiu Industry Park Company Limited – a firm whicj will be in charge of the development and operations of a 23-hectare industrial park in Hung Shui Kiu, she said the park company will act transparently. "We expect the company to produce an annual report explaining its work on attracting enterprises and investments over the past year, along with its financial information. This report must be submitted to the Legislative Council and made public." She added that some firms, such as those from the advanced construction industry and the manufacturers of Chinese medicine, are interested in setting up shop in Hung Shui Kiu.