Construction will not start until 2008 at the earliest when the government expects all consultations and statutory processes to be completed.

Kai Tak is the preferred site of more than 30 considered by the Civil Engineering and Development Department, Secretary for Economic Development and Labour Stephen Ip told legislators on Wednesday. ``The Kai Tak site has room for development and is by far the best,'' Ip said.

``The government will study ways to streamline the process. Hopefully, we can start inviting interested companies to bid within this year.''

He said the development has been incorporated in the Approved Kai Tak (South) Outline Zoning Plan.

``The Planning Department is reviewing development plans for the Kai Tak area. It is expected the entire planning review process and the statutory procedures will be completed in 2008,'' Ip said.

The government will continue to invite proposals on the exact location and operations of the terminal. But during open bidding, firms that submit proposals will also have to bid for the project. Without giving a schedule for development, Ip said the government is proceeding at ``full speed.''

Independent legislator and lawyer Alan Leong was worried the West Kowloon Cultural District would also be considered a site for future terminals. Ip said there may be more cruise terminals in future, but the cultural district is not appropriate because of technical difficulties.

``Water depth in the Yau Ma Tei Fairway and the berthing area would be insufficient for the maneuvering or berthing of mega cruise ships, it would affect vessels operating from nearby marine facilities and the existing land transport system would not be able to meet the demands of both the terminal and the culture district,'' he said.

Secretary for Housing, Planning and Lands Michael Suen said preliminary consultations have started but much work remains. ``We need to clear the statutory procedures, gazette the project, consult the public and probably handle opposing opinions. We hope to finish all these matters by 2008,'' he said. ``If there is need for shoreline reclamation, it may take even longer.''

The government's decision to welcome proposals from interested bidders in November before choosing a site was criticized by its own harbor planning body, the Harbourfront Enhancement Committee. Tourism Commissioner Eva Cheng said there was an urgent need to expand facilities since the existing Ocean Terminal is inadequate for expected passenger numbers or newer mega cruise ships.

``The objective was to allow flexibility for the private sector to put forward proposals,'' Ip said.

matthew.lee@singtaonewscorp.com