A Henderson Land Development joint venture has won a five-year contract to operate the Central Harbourfront Event Space in Hong Kong, with a clause that would require the government to be compensated if the number of events falls short of its commitment.

The Development Bureau on Thursday announced that Central Grand Limited (CGL), a joint venture between the property developer and concert organiser YW Company, beat five other bidders for the prime site which hosts major events such as the annual Clockenflap music festival and the Wine and Dine Festival.

The bureau used a “two-envelope” approach to the tender, which included a technical proposal weighted at 70 per cent and a price proposal at 30 per cent.

After evaluating the six bids, the bureau said large-scale commercial events featured in CGL’s proposal would “best utilise the harbourfront resources and the site space.”

It would also help promote the mega-event economy and “enhance the vibrancy of the harbourfront”.

Under the tenancy agreement, CGL will pay the government HK$1.52 million (US$194,071) in monthly rent for the 3.7-hectare (9.14 acres) site.

A new clause requires CGL to compensate the government should the actual number of events held at the event space fall short of the commitment.