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OpinionLetters

Hong Kong artificial island’s potential as land source could be sunk by this

  • The government’s tendency to go over-budget puts at risk even Hong Kong’s plentiful reserves stockpile

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A view from Lantau Island of the area where the proposed East Lantau Metropolis project would be located. The endeavour will cost HK$500 billion, if it stays within budget. Photo: Reuters
Letters
I write in response to those who, like Civic Party lawmaker Kwok Ka-ki, believe that the Hong Kong government’s proposal to build a 1,700 hectare artificial island off Lantau East would be like “pouring money into the sea”.
The government estimates the project to cost HK$500 billion, which is almost half of Hong Kong’s current fiscal reserves. Opponents of this mega project argue that budget blowouts are a common occurrence for almost all major government infrastructure projects. Their argument holds truth. For instance, the initial budget of the Hong Kong-Zhuhai-Macau Bridge stood at about HK$80 billion, but the final bill was around HK$120 billion. Similar cases of serious overspending include the MTR’s Sha Tin-Central Link – tainted also by shoddy works, Guangzhou-Shenzhen-Hong Kong Express Rail Link , and the Liantang/Heung Yuen Wai Boundary Control Point .
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However, we cannot deny that the provision of more land would help promote economic growth. First of all, unaffordable rent resulting from a shortage of land is making small-to-medium-sized start-ups near-impossible to run and existing enterprises are struggling to sustain their business in Hong Kong.

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