Hong Kong government to set up 2 bodies to look at attracting private sector funding for artificial islands and Northern Metropolis mega projects
- A committee to be headed by finance chief Paul Chan with an associated office will advise on ‘feasible investment and financing options’, policy address says
- But business and economic research expert warns difficult economy and uncertainty may put off private sector partners for schemes
A committee led by Hong Kong’s finance chief is to be set up to find ways to fund the city’s major building programmes, including hundreds of billions of dollars for the creation of the Kau Yi Chau artificial islands and the Northern Metropolis.
Chief Executive John Lee Ka-chiu’s policy address on Wednesday unveiled two new bodies – a Committee on the Financing of Major Development Projects to be led by Financial Secretary Paul Chan Mo-po, and an associated office.
The two will be asked “to advise on feasible investment and financing options,” with the possibility of bringing in private investors.
The Kau Yi Chau project, which would see authorities spend HK$580 billion (US$63.9 billion) to reclaim and develop land west of Victoria Harbour to create three islands, and the HK$100 billion Northern Metropolis plan, involving large tracts of land near the border with mainland China.
Andy Kwan Cheuk-chiu, the director of the ACE Centre for Business and Economic Research, said investments would probably use the build – operate – transfer (BOT) method, where private companies designed, built and operated a construction project for a specified period of time.
