Development Bureau's response to media reports about Operation Building Bright scheme

In response to media enquiries on reports about the Operation Building Bright (OBB) scheme today (June 3), the Development Bureau (DEVB) made the following statement:

The OBB scheme is an one-off special measure launched in 2009 with a view to achieving the dual objectives of creating more job opportunities for the construction sector and improving building safety. The main executive agencies for the OBB scheme are the Hong Kong Housing Society (HKHS) and the Urban Renewal Authority (URA).

The HKHS and the URA have all along been implementing various measures to ensure no abuse of the OBB subsidy. The HKHS and the URA will engage an independent consultant in respect of each of the participating buildings under the OBB Scheme. The independent consultant will evaluate the projected expenses of the works required, enabling property owners to assess whether the received tenders are reasonably priced. Upon completion of the repair works, the relevant executive agency and the independent consultant will inspect the building to ensure the maintenance works are in compliance with relevant approval and legal requirements before disbursement of the subsidy.

To avoid abuse of the subsidy, the actual amount of the subsidy will be calculated according to the actual number of maintenance items completed and the estimate made by the independent consultant. To ensure the Government funding is put to the best use, the Government also requires the HKHS and the URA to separately engage an independent auditor to carry out annual audit on the account of the OBB scheme and submit an independent audit report to the DEVB.

In response to the concern in the community on suspected bid-rigging in some building repair and maintenance projects, the HKHS and the URA have implemented new tendering arrangements since September 2013 to enhance the independence of the tendering process and reduce the risk of bid-rigging. The measures include engagement of independent professionals to undertake tender related administrative work, and the provision of an open, fair and interference-free tendering platform for the owners to use. Based on information provided by the executive agencies, the efforts have yielded positive results, with the numbers of participating contractors interested to submit tenders increased by two to three times, and the tender bids close to the evaluation provided by independent consultants.

While the OBB scheme provides financial and technical support to owners of participating buildings, the owners should also take part actively in monitoring repair and maintenance works of their properties to protect their own interests.

Ends/Friday, June 3, 2016
Issued at HKT 20:13

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