Cementing Hong Kong's status as a world-class I&T powerhouse has gained momentum with the unveiling of vast layout plans for the Northern Metropolis and the Hetao Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone. The mega projects are to be developed in phases with seamless transportation connectivity. Oswald Chan reports.

The 30,000-hectare Northern Metropolis plan envisioned by the fifth-term Hong Kong Special Administrative Region government aims to provide new land sources to drive future economic growth.

The mega project's blueprint, unveiled in 2021, calls it one of the key land sources for innovation and technology transformation in the SAR, driven by synergy between its I&T facilities in the Northern Metropolis and the Hetao Cooperation Zone

The HKSAR promulgated the development outline for Hong Kong Park of the Hetao Cooperation Zone in November last year. It is envisaged to be an industry-academia-research platform to drive research and development transformation, as well as a pilot production base for industries.

Under the nation's 14th Five-Year Plan (2021-25), the "one zone, two parks" Hetao Cooperation Zone will be a major cooperation platform to make the Guangdong-Hong Kong-Macao Greater Bay Area a global I&T hub.

The entire I&T zone includes Hong Kong Park of Hetao Cooperation Zone, San Tin Technopole and Ngau Tam Mei New Development Area in the Northern Metropolis. They will be connected by the Northern Link's main and spur lines, connecting the new Huanggang Port and the Mass Transit Railway Corp's Tuen Ma Line and East Rail Line, along with the existing San Tin Highway and the planned Northern Metropolis Highway.

The I&T zone comprises the 210-hectare San Tin Technopole, the 87-hectare Hong Kong Park, as well as the 15-hectare Lau Fau Shan area and the two-hectare Sandy Ridge for I&T purposes. Coordination among them is seen as crucial to their overall development, but what should their specific roles be?

Chiu Kam-kuen, Greater China chief executive at Cushman & Wakefield, suggests that the SAR government stipulate the positions and tasks of Ngau Tam Mei, San Tin Technopole and Hong Kong Park, and speed up the spatial planning process.

"The proposed Ngau Tam Mei university town should be the upstream player in the I&T industry chain, while San Tin Technopole and Hong Kong Park should be an industrial pilot transformation base that connects upstream scientific research in the university town," he says.

Shen Jianfa, a professor at the Chinese University of Hong Kong's Department of Geography and Resource Management, agrees that the complementary interaction between San Tin Technopole and Hong Kong Park should be enhanced to achieve synergetic effects to boost the city's I&T development. Therefore, the transportation infrastructure linking the two areas should be completed in the soonest possible time.

"Hong Kong and Shenzhen must work closely in the planning and development, especially in cross-boundary transportation infrastructure, boundary-crossing arrangements and convenient movement of people, capital and information," says Shen.

In promoting the coordinated development of Hong Kong Park and Shenzhen Park, convenient flow of important innovation elements of personnel, materials, funds and data within Hong Kong Park is equally important, says Chiu.

Transportation linkage paramount

Think-tank researchers, land economics scholars and real-estate analysts stress that spatial planning should focus on aligning the transportation infrastructure design and development schedules, implementing a phased development approach, employing diverse financing methods and streamlining the cumbersome land planning process.

Hong Kong-based think tank, Doctoral Exchange, wants the SAR government to relocate Hong Kong Park to the Tit Hang Shan area rather than being at the proposed location.

"Tit Hang Shan is government land. So, there is no need to resume land. The development schedule could be accelerated by conducting in-situ land exchange arrangements with private developers that have accumulated large bulks of agricultural land in the Northern Metropolis region," says Kathy Lee Yuen-yan, head of research at Colliers International (Hong Kong).

With such a relocation, Kwu Tung Station on the East Rail Line could be connected to the proposed Tit Hang Shan, Hong Kong Park and Huanggang station to form a circular spatial arrangement, rather than linear-shaped, and that would strengthen cross-boundary transportation network accessibility, she says.

The government's proposal is for the Northern Link to connect Kam Sheung Road, Au Tau, Ngau Tam Mei, San Tin and Kwu Tung by 2034. The exact commissioning date for the spur line, connecting San Tin, Chau Tau, HSITP and Huanggang, is yet to be announced. "As Kwu Tung Station is due to be completed by 2027 and if it can be connected with Tit Hang Shan after relocating Hong Kong Park, it would mean faster transportation connectivity," says Lee, noting that the proposed Ngau Tam Mei and Au Tau stations are on the edge of San Tin Technopole and Hong Kong Park.

"The government must promptly establish a development timeline for the Northern Link Spur Line to ensure it can be completed before 2034 at the latest to enable it to link up with the two parks in time," suggests Ryan Ip Man-ki, vice-president of Our Hong Kong Foundation and co-head of its Public Policy Institute.

Lee notes that Shenzhen is well ahead in spatial planning for I&T development as the Shenzhen authorities intend to link up some existing railway lines in various parts of the city with the entire Shenzhen Park of the Hetao Cooperation Zone.

Another spatial planning modification concerns Sandy Ridge, Lau Fau Shan and Ngau Tam Mei. Lee says the proposed data center facilities at Sandy Ridge and Lau Fau Shan are scattered, and cannot create a synergistic effect on San Tin Technopole and Hong Kong Park. The planned Ngau Tam Mei university town is also quite far away from the entire I&T ecosystems in San Tin Technopole and Hong Kong Park, as well as other tertiary educational institutions in the SAR.

She recommends expanding Ngau Tam Mei university town to Tit Hang Shan and Ma Tso Lung to create more synergy and better collaboration with the I&T industry.

Ip agrees, saying Ngau Tam Mei's development pace must be in sync with that of San Tin Technopole and Hong Kong Park and, ideally, it should even be ahead of these projects.

Consultations on the current development proposal for Ngau Tam Mei are ongoing, to be followed by an environmental impact assessment and the statutory planning process. Site formation and infrastructure works are set to begin in 2027. The first phase of the university town is expected to be completed in stages from 2034 to align with the commissioning of the Northern Link.

"To expedite Ngau Tam Mei's development, site formation work could begin concurrently with the Northern Link project. This could involve underground structure works like tunnels, parking lots, and public facilities to reduce excavation and backfilling activities, helping to shorten project durations, reduce costs and simplifying complexities," says Ip.

Phased development approach

Another spatial planning principle is phased development of the designated new development sections of Hung Shui Kiu/Ha Tsuen (12.5 hectares) and Fanling North (15.9 hectares), as well as San Tin Technopole (18.6 hectares).

The government launched an "expression of interest" exercise recently by setting out baseline scenarios with specific development requirements for private developers to follow.

The administration hopes to invite tenders this year for the pilot areas of Hung Shui Kiu/Ha Tsuen and Fanling North that have already completed the statutory planning procedures with land resumption almost completed. It also aims to invite tenders for San Tin Technopole in 2026 as the land has yet to be resumed.

According to the Development Bureau, the three pilot areas are expected to involve development costs of between HK$10 billion ($1.28 billion) and HK$20 billion. The program could save taxpayers more than HK$1 billion by reducing the period of completion to 10 years or less.

"If developers can do spatial planning and design during the land leveling process, the project development time could be shortened," says Chiu. "To boost investor confidence, the government needs to plan transportation facilities within and outside the new development area to ensure convenient connections."

In Lee's view, the government should decide whether to trim the development scale of the three pilot zones amid the downturn in the property market and high interest rates. "Some local developers may not be able to participate if the scale of the pilot zone's land development is too large. By trimming the scale, it would be useful for the authorities to determine the optimal scale of development."

Diverse financing options

As the Northern Metropolis is a huge project that requires long-term investments, Ip says the government should help developers use various financing methods to reduce interest-rate charges and extend repayment periods.

In this way, private developers could be invited to bid for the Northern Metropolis construction work. By participating in site formation and construction works, the costs could be reflected in their bids.

The government could avoid bearing high development costs, while developers could offer lower bids, alleviating cash flow pressures on both sides. Policy banks, such as China Development Bank, could be invited to take part by offering loans at lower interest rates and with longer repayment periods.

As developers need to invest substantial amounts upfront for infrastructure building, Chiu and Lee agree that allowing them to make land payments in instalments would permit a healthy cash flow. As investment return will come at a later stage, developers should be allowed to pay a lower land price initially, with the bulk of the payment to be made later.

Streamlining planning process

The ultimate step involves streamlining the cumbersome spatial planning, land resumption and environmental assessment processes. The government has proposed amending legislation, such as the Town Planning Ordinance and the Lands Resumption Ordinance, to refine and shorten certain statutory time limits, avoiding duplication of procedures of a similar nature, and authorizing government departments to conduct various procedures simultaneously.

"For speeding up land clearance operations, the government can enhance compensation plans for affected residents and offer them comprehensive resettlement in a timely manner," says Chiu.

The authorities should also prioritize examining brownfield sites that are closer to existing infrastructure facilities to hasten their development, he says.