The Hong Kong government has approved handing three property sites to the future operator of a planned green transit system in East Kowloon to boost financial viability. The project linking Choi Hung and Yau Tong aims to open by 2033.
The government said on Friday that the arrangement would ensure the expertise and financial capability of the private sector could be best utilised. The successful bidder will be responsible for financing, design, construction, operation and maintenance.
Since projected revenues net of expenditures would fall short of the expected return on capital, the government will grant property development rights of three primarily residential sites. The operator will pay a nominal premium.
The tender will be launched next month for the 7km line. Similar arrangements were used for the Kai Tak transit system.