Should private developers take over parts of Hong Kong’s ambitious Northern Metropolis mega project?
- Development minister Bernadette Linn says authorities considering outsourcing part of project to private developers as way to reduce financial burden on government
- But land policy experts and economists say that while financing model could improve short-term cash flow, public interest may be undermined, with flats possibly pricier
Development minister Bernadette Linn Hon-ho on Monday said authorities were considering outsourcing part of the project to private companies as a way to reduce the financial burden on the government.
Under the model, which has been adopted by authorities in mainland China, private companies are entrusted with carrying out various tasks of development, including land levelling and building infrastructure, following a bidding process. The developers then enjoy more favourable land premiums.
“This would be helpful to the cash flow of the government,” Linn said. “Private developers are also more flexible in terms of bidding and hiring when it comes to developing a large plot of land.”
The project is expected to provide half a million flats for 2.5 million residents and establish a new commercial area along the border dedicated to helping Hong Kong become an innovation and technology hub. But the government has yet to reveal the cost.