Chief Executive John Lee Ka-chiu on Wednesday proposed a new high-level committee and legislation dedicated to speeding up construction of the Northern Metropolis – a proposed new township near the boundary that covers one-third of Hong Kong’s land to house one-third of its population.    

As a highlight of his fourth Policy Address, Lee said he remains “deeply concerned” about the progress made on the metropolis, noting its importance as a driver of improved economic and livelihood issues.

“The Northern Metropolis will occupy one-third of Hong Kong’s total area. The hope is to use this land to create new industries and change the direction of Hong Kong’s development,” Lee said at a news briefing on Wednesday afternoon.

READ MORE: HK eyes enhanced accountability system, AI to boost governance

The proposed Committee on Development of the Northern Metropolis, to be chaired by Lee, aims to speed up high-level decision-making.

Three specialized working groups, each led by a senior official, will come under that committee.

The Working Group on Devising Development and Operation Models, chaired by the Financial Secretary Paul Chan Mo-po, will be responsible for formulating development and operation models for industry parks in the metropolis.

Dedicated companies or statutory or non-statutory bodies will be established to manage various industrial parks, including one for the 23-hectare Hung Shui Kiu site, with details to be announced by year-end.

In the meantime, the special administrative region government will revise its public-private partnership policies and its tendering mechanism, as well as financing programs.

A dedicated project supervision office will be established under another planning and development working group, led by the deputy financial secretary, to enhance coordination and oversight of the approvals process.

The new office will not replace existing approval procedures but will coordinate departments to set clear time limits and proactively intervene to accelerate workflows, government sources said.

The university town construction group, chaired by Chief Secretary for Administration Eric Chan Kwok-ki, will study successful models from overseas and the Chinese mainland to attract top-tier international and domestic research institutions.

Government sources also disclosed that in response to public opinion, a planned five-hectare university town site in Hung Shui Kiu will be expanded to nine hectares. The two other sites for the university town — a 46-hectare site in Ngau Tam Mei and a 40-hectare site in the New Territories North New Town — can also be enlarged.

To overcome administrative hurdles, the government will draw up legislation after public consultation in the first two months of next year prior to submitting it to the Legislative Council in mid-2026. The legislation will cover areas such as setting up dedicated statutory park companies, establishing a streamlined funding channel for park companies that does not require LegCo approval, and facilitating cross-border flow of data, capital, personnel, and biological specimens within designated zones.

Based on experience from the Chinese mainland, an 11-hectare Hung Shui Kiu site will pilot a “phased development” model, allowing retail and entertainment venues to open during construction to generate early customer traffic.

To attract investment, the SAR government will now allow land tenancies to be renewed twice, potentially extending them from a maximum of 7 years to 21 years, a significant increase from the previous requirement for quarterly renewals.

A new “pay for what you build” model will let developers pay land premiums only on the floor area they construct, not the maximum allowed, drastically cutting upfront costs.

This three-year pilot program for nonresidential sites will require payment on only 60 percent of the floor area initially, with the option to develop the remaining area within a decade.

The bold measures to speed up development of the new township has received approval from various sectors.

READ MORE: New HK program to fast-track academic, research, industry synergy

Among them are The Chinese General Chamber of Commerce and legislator Lau Kwok-fan. They said they believe the measures will enhance policy efficiency, reduce construction costs, and attract enterprises.

Both endorse legislation dedicated to expediting processes and simplifying procedures, viewing it as essential for providing a clear legal framework and strong leadership to accelerate the large-scale development of the Northern Metropolis.

The Chamber said it hopes the SAR government will attract mainland capital to build an integrated international hub for education, research, and innovation.

Contact the writer at stacyshi@chinadailyhk.com