Two heavyweight consortia bid for Hung Shui Kiu

The government’s first major area development pilot under the Northern Metropolis initiative has drawn bids from two heavyweight consortia, prompting Secretary for Development Bernadette Linn to hail their entry into the tender as a sign of strong market confidence in the new model.

In an interview with Ta Kung Wen Wei Media Group, she described the bidders for the Hung Shui Kiu project as "heavyweight enterprises" and said the tender response had met expectations.

Both proposals were submitted by joint ventures between traditional property developers and technology and industrial firms – a composition that Linn said directly reflects the core vision behind the project.

The successful formation of cross-sector partnerships, she added, sends a highly positive signal to the market.

The government is currently evaluating the two bids, with results expected to be announced by the end of next month or earlier.

The tender terms, Linn stressed, are intentionally stringent, designed to prevent past pitfalls in which large-scale developments were skewed towards residential use while industrial components lagged.

The contract, she explained, mandates that the winning consortium must operate the designated industrial land on a strictly defined timeline, with clear milestones for land formation and industrial construction and penalties for non-compliance spelled out.

Linn stressed that these measures ensure industrial development remains the central priority, allowing the government to avoid the old malpractices of prioritising residential over industrial and stay true to the planning principle of integrating industry with residential living.

On the operational front, she confirmed that the company tasked with running the Hung Shui Kiu Industry Park has already established its board and held its inaugural meeting.

Recruitment efforts for the chief executive are proceeding in an orderly manner, with a consultancy team engaged to handle preparatory work.

Separately, preliminary investment discussions are already under way with multiple enterprises interested in setting up operations in the park.

Looking ahead, Linn revealed that the government is preparing to launch the next parcel project in the Fanling North New Development Area.

Land resumption for the site has been completed, and the administration plans to invite tenders by the end of this year, though the final schedule will depend on market conditions at the time.

With the Northern Metropolis' acceleration included in the nation's 15th Five-Year Plan, Linn believes the government will push forward with great effort.

"For the market, it is also a very important signal, letting the market know the priorities for resource allocation in the future," she said.

"I believe everyone will understand that, logically, it should be placed among projects that are at the level of national development strategy and have strategic significance."

Edited by Aaron Tam ...