Multiple funding options for artificial islands

The government will use multiple financing options for the Kau Yi Chau Artificial Islands development, says Secretary for Development Bernadette Linn Hon-ho.

Linn, on radio yesterday, said the government has not changed its determination in land creation but the delay in the development plan is a response to society's concerns on the fiscal deficit.

The government will act prudently to complete studies in financing and development before starting the massive construction, she added.

"The plan is to start environmental impact assessment procedures this year to get more detailed information by mid-2026. We aim to commence land reclamation within this term of the administration."

Calling the development an investment, she said the government will not ignore the investment return and will multiple options to fund it.

"We will not put all the eggs in the same basket, and we'll ensure different stakeholders can participate in financing the development. But the government must retain the leading role in the land supply on the artificial islands," she said.

"Kau Yi Chau is situated in a strategic position, and the government must develop artificial islands at the place in order to obtain a large amount of land for forward-looking planning and futuristic urban design."

She said the government has calculated the land demand for the next 20 to 30 years and expects the living areas of every Hongkonger to increase by 10 to 20 percent after the construction of the artificial islands.

Although the government has to tighten its belt amid the HK$101.6 billion fiscal deficit for 2023-25, all projects involving housing supply in the next 10 years, especially public housing projects, will go ahead as far as practicable, she added.

On the Northern Metropolis mega plan, Linn recalled there had been a few failed attempts in land exchange.

"If private developers fail to cooperate with the government's plan, the government will have no choice but to follow the game rules to reclaim ownership of the land and provide reasonable compensation, or else it is hard to show the government's determination to lead the mega development plan."

Linn said the property market has become active since all cooling measures were slashed.

"Restoring vitality to the property market is a good sign, while the government is confident to roll out land capable of building 80,000 private housing flats in the next five years," Linn said.

She added the government has sufficient land to prevent property prices from soaring again.

michael.shum@singtaonewscorp.com