Joint venture proposed with Hong Kong’s private sector over West Kowloon Cultural District
Chief Executive Leung Chun-ying explained the “enhanced” financial arrangement was to ensure the cultural hub fully attained its vision of meeting the long-term development needs of the city’s arts and culture
The West Kowloon Cultural District (WKCD) will get a much-needed fiscal lifeline when the government grants the body overseeing its development rights of hotel, office and residential zones for a joint venture with the private sector.
The landmark move will mean the West Kowloon Cultural District Authority will have the funding for the final phase of the multibillion-dollar arts hub, which the government has been struggling with, as it can share profits with the private sector.
It will also help to absorb the expected deficit of some HK$500 million per year for running the arts and culture facilities.
“The authority may develop the hotel, office or residential facilities jointly with the private sector through open tender and a build-operate-transfer arrangement, and share rental revenue from such facilities to sustain the operation of the WKCD,” he said.
“This will dovetail with the financing arrangement for the development of the third batch of art and cultural and related facilities, particularly a world-class music centre, to offer opportunities for local as well as mainland and overseas music troupes and musicians to showcase their talent in the WKCD,” he added. The relevant zones will occupy an area of about 360,000 square metres.