How Hong Kong’s artificial islands project can tell the city’s story well
- The Kau Yi Chau artificial islands plan circumvents complex land ownership issues that plague the northern New Territories
- Not only can environmental and cost concerns be overcome, but the project can also showcase a new home ownership model and attract interest from the wider region
A holistic solution that takes into account opportunities in the Greater Bay Area is needed, one based on a bottom-up approach that addresses the needs of different industries.
Second, our design and construction codes need to be updated so that advanced construction technologies using precision equipment can be adopted, removing inefficiencies typically caused by overdesigning.
Third, we should sharpen project management and governance expertise to reduce excessive subcontracting and improve procurement processes, for example, by employing artificial intelligence.
Finally, ingenious financing schemes should be devised with professional advice from financial and legal experts who excel in land project transactions and financing.
In addition to issuing debt and public-private-partnerships, which the government is considering, it could adopt contractor financing or an initial public offering that allows the public to invest in their own future. The legal complexities are surmountable as long as the value of the landed properties is measurable.
The project will create 250 hectares of new land for housing, and another 100 hectares for other economic use. In December, the government lowered its estimate for the revenue expected from land sales to HK$750 billion, higher than the total construction cost of HK$580 billion.
The project can be a shining example of telling a good Hong Kong story of collaboration between its industrious residents and a responsible government, entailing the joint efforts of urban planners, architects, engineers and builders, as well as financiers, appraisers and environmentalists.
At an economically turbulent time across the world, Hong Kong is at the critical point of reorienting its strategic positioning. History has shown that once-controversial bold long-term projects like Chek Lap Kok Airport turned out to be international achievements. With prudence and professionalism, unity and resolve, we can be successful again.
Lucy M.S. Kwan is adjunct assistant professor at HKU’s Department of Statistics and Actuarial Science and chairman of the Tanner Hill Workshop
Alexis Wong, also from the Tanner Hill Workshop, is a director of an NGO in schools and elderly services. He was previously a senior executive with a listed company, and is well experienced in the financial and hospitality industries