When private land has to be acquired in the public interest, mostly to implement public works projects, it may be acquired by negotiation or resumed under the relevant ordinances which provide for payment of compensation based on the value of the property and for business loss where appropriate, at the date of acquisition. If agreement cannot be reached on the amount of compensation, either party can refer the claim to the Lands Tribunal for adjudication. Apart from statutory compensation, there is an alternative system of ex gratia payments to provide a simplified compensation procedure.

    In the New Territories, a total of 578 463 square metres of private land — comprising 573 998 square metres of agricultural land and 4 465 square metres of building land — was acquired in 2002. Most of the acquired area was to provide land for implementation of road improvement works and river training projects. The road improvement works included the construction of roads in Yuen Long and for Route 9 between Cheung Sha Wan and Sha Tin. The river training projects covered the regulation of Shenzhen River in North District, the construction of the Yuen Long Bypass Floodway and main drainage channels and village flood protection schemes in San Tin, Yuen Long District. In the urban area, 46 private lots were acquired, including 39 lots at Anderson Road in Kowloon, for the construction of public housing, schools, open space and ancillary works.

    More than $1.06 billion was paid out region-wide in compensation payments in 2002.

    The Lands Department was also involved in the resumption of land for implementation of urban renewal projects undertaken by the Land Development Corporation and its successor, the Urban Renewal Authority. During the year, compensation totalling $28 million was paid to owners of 25 resumed properties affected by six renewal projects in Mong Kok, Yau Ma Tei, Tsuen Wan, Tsim Sha Tsui, Wan Chai and Kennedy Town.

    In addition, the Lands Department resumed land for implementation of the Sheung Shui to Lok Ma Chau Spur Line railway project. For this purpose, 162 084 square metres of agricultural land, 130 square metres of building land and 70 053 square metres of underground strata were acquired in 2002. By year-end, compensation payments amounted to about $65 million.