Hong Kong leader vows to cut red tape, contain costs for Northern Metropolis, points to green bonds as financing prospect for mammoth project
- Chief executive vows to ensure spending on series of major infrastructure projects is evenly distributed and managed
- Lam also assures residents that development will not cause more congestion
Hong Kong’s leader has vowed to cut red tape and contain costs for the development of a vast metropolis near the border with mainland China, raising the prospect of issuing green bonds to finance the mammoth project and ease the strain on public coffers.
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Hong Kong leader Carrie Lam gives last policy address of current term, ending on emotional note
Asked whether the metropolis – without an estimated price tag attached to it yet – would incur huge public spending, Lam pointed to bonds as a way out. She said her government had been ramping up the issuance of bonds in the last few years, earning Beijing’s support.
“We will use fundraising, especially green bonds, to finance initial development stages,” Lam said. “I’m confident the project won’t be a burden on our public coffers, but will consolidate our position as an international finance centre.”
Green bonds are used by the government to fund projects that will improve the environment and facilitate the transition to a low-carbon economy.
The ambitious plan to build the Northern Metropolis near the border with Shenzhen, with an innovation and technology corridor as its engine, has been the talk of the town since she floated it on Wednesday as a major initiative to tackle Hong Kong’s acute shortage of affordable housing.