Hong Kong ‘to press ahead with studies for artificial islands mega project this year’, despite plans to delay launch by up to 3 years

“The project delay will have no impact on our 10-year plan for providing public and private housing,” she told a radio programme.

Financial Secretary Paul Chan Mo-po said on Friday that reclamation works to create the artificial islands around Kau Yi Chau would be “slightly” delayed by about two to three years.

The finance chief also mentioned the decision in his annual budget speech two days earlier, saying the mega project would not start next year as planned, at a time when the deficit is expected to reach HK$101.6 billion (US$12.9 billion).

The shortfall will leave Hong Kong’s fiscal reserves at HK$733.2 billion, the lowest figure in a decade.

Linn on Sunday said the government’s wider housing strategy could undergo some adjustments in light of the mega-project’s delay.

“If it’s delayed a bit, we’ll try to find land in other places in the meantime,” Linn said.

“We will try to look at the Northern Metropolis project, which has works started with more mature planning, and see if we can speed up the progress and increase the supply to make up the shortfall.”

Hong Kong’s Lantau Tomorrow plan delayed by 2 to 3 years, finance chief says

The development minister was referring to the government’s plan to create a global innovation and technology hub and 900,000 flats for 2.5 million people near the border with mainland China.

She added that authorities would proceed with an environmental impact assessment and detailed planning study this year as part of the Lantau Tomorrow mega project.

“The financial secretary has proposed delaying the reclamation project a little bit because we have had a tight budget for the past few years,” she said.

“There have been voices of concern in society, so we want to work out the financing plans before kick-starting the project to ease public concerns … The government has remained prudent.

“We aim to roll out this reclamation project within this term of government. This is a goal we’ve been working hard to achieve.”

The Lantau Tomorrow project is expected to span 1,000 hectares upon its long-term completion and provide 210,000 flats to house 550,000 people, as well as paving the way for a third central business district with a rail link to a planned logistics hub.

The government earlier estimated that construction would cost HK$580 billion and forecast the finished project would produce financial returns of HK$750 billion.

Linn also said the public would be invited to share their views on the project’s environmental impact, adding that its detailed planning studies would touch on the designs of roads and bridges expected to be finished in mid-2026.

“During this period, the government will also examine different financing and development options to decide how many phases the project should be divided into,” the minister said.

She emphasised the government would adopt a multipronged approach to financing the project, while different parties would handle the various elements of the scheme, such as the roads and railways.

“This is a mega project as well as a hefty investment, we will definitely look into its returns … as well as its economic benefits,” she said.

“There are a lot of different kinds of work to be carried out. We won’t put all our eggs in one basket … We’ll allow different parties to take part in the project but the government must take the lead.”

Hong Kong government can bring back property curbs if necessary: Paul Chan

Linn also touched on Chan’s decision to scrap all property cooling measures, vowing to produce land for the creation of 80,000 private homes in the next five years to satisfy demand and prevent the market from overheating.

“The public should not worry about the housing supply … We are confident that the market can meet the demand,” she said.

“It’s a good thing to see the market become active, but if it heats up again we’ll provide more housing supply to meet the demand.”