Kai Tak Smart Transit plan secures financial framework approval

The government plans to fund development through a transit-oriented approach.

The Chief Executive-in-Council has approved the financial framework for the proposed Smart & Green Mass Transit System (SGMTS) in Kai Tak.

A number of innovative measures will be implemented to expedite project delivery, enhance cost-effectiveness, and leverage the expertise and financial capability of the private sector.

The government said that it has been working to introduce the SGMTSs through a “dual innovation” thinking on policy and technology.

The entry of new local, Mainland, and overseas investors and operators will be encouraged by selecting a franchisee to finance, design, construct, operate, and maintain each new system via an open tender.

The government plans to provide funding support via a transit-oriented development (TOD) approach.

Property development rights of TOD sites near the SGMTSs will be granted to the franchisees of the SGMTSs for planning and development.

The government will also introduce a new technology-neutral, common, and standardised regulatory framework via legislation to provide the statutory backing for granting and regulating franchises of these systems.

It is anticipated that the new legislation could shorten the lead time and allow flexibility for the government to grasp the opportunities brought about by technological breakthroughs. The target is to introduce the said bill into the Legislative Council by 2026.

Additionally, the government will adopt a set of streamlined building control procedures and set up a dedicated interdepartmental one-stop platform, such that the franchisees and the relevant departments could deliberate on the design, construction, and operation aspects at an early project stage to expedite the entire approval process.

The Chief Executive-in-Council approved that property development rights of Sites 4B5, 4C4, and 4C5 in Kai Tak should be granted by way of private treaty grants at nominal premiums to the franchisee to be selected through open tender to provide funding support for the Kai Tak Project.

Tenders for the Kai Tak Project will be invited shortly, in which tenderers will be required to propose in their financial proposals a fixed sum payable to the government for the grant of the SGMTS franchise and property development rights of the Sites.

The government plans to award the tender for the Kai Tak Project in 2026 for commissioning in 2031.

It also plans to adopt an approach similar to that of the Kai Tak Project in taking forward the SGMTS projects in East Kowloon and Hung Shui Kiu/Ha Tsuen and Yuen Long South New Development Areas, with a target to invite tenders for the franchises within 2026.