The Hong Kong government has told public broadcaster RTHK that it won’t resubmit a revised funding application for New Broadcasting House.

An email announcement was sent to staff on Wednesday by Director of Broadcasting Roy Tang.

The decision comes despite roughly US$97 million (HK$750 million) or 12 percent being shaved off the cost of the new premises, which will be built in the New Territories.

The original $785 million (HK$6 billion) plan was rejected by Hong Kong law makers as too expensive.

The cost skyrocketed, mainly due to RTHK’s plans to launch its own TV channel. At present, the broadcaster produces public service programmes for other domestic channels as well as its radio services.

The delay is expected to set the project back by at least two years and could see costs increase further, Tang told lawmakers earlier this month.

It appears that RTHK will now need to reduce the cost of the project signficantly before it can be reconsidered.

Tang told staff that the Commerce and Economic Development Board (CEDB) would soon coordinate with the broadcaster and the Architectural Service Department (ArchSD) to take forward the planning and re-tendering for the project.