Shenzhen municipal government has raised the minimum compensation for demolishing private homes outside the special economic zone, a press conference was told yesterday.

Liu Yonggen, vice director general of the land resources and housing management bureau, said the compensation was being increased to speed up the construction of major infrastructure projects and to avoid conflict in residents’ relocation.

Residents should be compensated by at least the market price of their homes being demolished for public interests, according to a new rule released yesterday and effective today.

The new rule replaces a decade-old relocation rule, which often undervalued the properties’ worth, especially outside the special economic zone.

“Compared with the previous compensation standards, the new rule will raise the minimum compensation for private houses outside the special economic zone by 30 to 40 percent. The minimum compensation for private houses inside the special economic zone will remain largely unchanged,” said Liu.

The move is expected to help speed up major projects including the Universiade City and new Metro lines which are mostly outside the special economic zone.

Shenzhen has promised to build 155 kilometers of Metro lines by 2011, ahead of the Universiade, but up to now, only about 22 kilometers have been completed. Difficulty in relocating residents is quoted as a major reason for the slow progress.

(Shenzhen Daily March 15, 2007)