Hong Kong to grant 3 property sites to sweeten East Kowloon transit project tender

Hong Kong to grant 3 property sites to sweeten East Kowloon transit project tender Operator of green transit system will pay nominal premium for sites given revenue of project expected to fall short of return on capital Three property sites will be handed over to the future operator of the planned green transit system in Hong Kong’s East Kowloon to boost the project’s financial viability under arrangements approved by the government. The project, which will link Choi Hung and Ma Yau Tong, will be put to tender next month with the goal of opening the 7km (4.3 mile) rail line by 2033. Similar to the arrangements for the transit system in Kai Tak, the successful bidder for the East Kowloon project will be responsible for the financing, design, construction, operation and maintenance of the network. The government said on Friday that the arrangement would ensure “the expertise and financial capability of the private sector could be best utilised”. “Since the present value of all projected revenues net of projected expenditures of the project would fall short of the expected return on capital, the government will provide funding support for the East Kowloon project through granting property development rights of three sites primarily for residential uses to the future franchisee, with a view to increasing incentives,” it said. “This will also enhance the growth and vitality of the areas served by the [transit system], and in turn strengthen the ridership of the [transit system].”