Why the Decision on a Northern Metropolitan Authority Can't Be Rushed

W. Syaban

April 18, 2025

The success depends entirely on how well it is executed. Thorough public consultations will guarantee that any such authority addresses both economic and societal requirements.

Hong Kong's budget suggests speeding up the development of theconstruction projects Northern Metropolis Several individuals have proposed a Northern Metropolis development authority be set up, suggesting that strong top-tier guidance might accelerate the process.

However, precisely how could this governing body speed up progress? What factors must be considered? Most crucially, in an age marked by geopolitical strains and financial hardships, what strategies might it employ to draw investments and tackle budget shortfalls?

In recent years, the administration has streamlined red tape elimination along with eased regulations, cutting out superfluous processes and providing greater flexibility These have contributed to reducing project timelines .

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However, the Northern Metropolis project is a large-scale initiative encompassing several policy departments. The Innovation, Technology, and Industry Bureau is responsible for mapping out strategies for technological advancement and innovation, along with determining the necessary land requirements. In parallel, the Development Bureau handles preparing the land, while the Transport and Logistics Bureau focuses on establishing transportation infrastructure.

From initial concept to final execution, these initiatives frequently require more than ten years. In today’s swiftly evolving landscape, where technological advancements occur at breakneck speed, if agencies persist in functioning as isolated units—making autonomous choices prior to handing off the project—the progress faces significant risk of obsolescence even before ground is broken for construction.

Creating a development authority as a legislative entity might solve this issue. This organization would manage the planning, design, construction, and operation of initiatives within the Northern Metropolis, reducing unnecessary procedures. Aligning transportation infrastructure with the schedule for developing the new zone would enable the authority to swiftly tap into the latent value of the land, thereby enhancing investors' trust.

A separate development agency might offer the government more financial leeway. Typically, financing for major infrastructure projects depends on legislative approvals, private-public collaborations, or appropriations from the Legislative Council. bond issuance A fresh organization paves the way for different methods of raising capital.

For instance, the administration might infuse land along with a share of upcoming taxes from the Northern Metropolis into the organization in return for holding managerial ownership. The leftover stakes could then be made available internationally, drawing prolonged financial support from Mainland China and beyond. Belt and Road Initiative Countries. By including particular clauses, the government could obtain a majority on the board, keeping control over decisions.

The development agency had the option to lease lands and infrastructures according to actual requirements or collaborate with key stakeholders. It would operate under professional management, adhering to market-driven strategies and assuming its profits or losses independently. Such an approach would improve operational effectiveness and bolster market trust in the Northern Metropolis initiative.

The government might find guidance in the founding of Hong Kong. Airport Authority , which falls under the purview of the Airport Authority Ordinance. This organization is entirely owned by the government and functions as a statutory body that operates on a commercial basis, with major income derived from service charges at Hong Kong International Airport.

According to Section 5(2) of the ordinance, the Airport Authority has the ability to undertake commercial or industrial ventures on rented airport property with the aim of making profits. This approach might also be applied to a Northern Metropolis development agency, enabling it to produce revenue through the construction and management of infrastructure and businesses.

Another example is Singapore's Sentosa Development Corporation Established as a statutory body within the Ministry of Trade and Industry, SDC was tasked with developing Sentosa Island. Operating as the lead planner, SDC’s mandate includes overseeing Sentosa's growth, administration, and promotional activities, aiming to position it as an attractive getaway for residents and visitors alike. To handle day-to-day operational duties, various business units were set up.

However, the magnitude of the Northern Metropolis would exceed that of Hong Kong’s airport and Singapore’s Sentosa Island, featuring an even broader range of elements and greater intricacy, which calls for thorough consideration. Initially, the development agency needs to function within current legal boundaries and governance setups to prevent conflicts or redundant institutional layers. If this integration process isn’t managed with great care, its sophistication might instead slow down progress rather than accelerate it.

Furthermore, the administration must activate Land Resumption Ordinance To obtain private property for the Northern Metropolis. However, if this land is transferred to a commercially operated development agency, it might fail to meet the ordinance’s “public purpose” criterion. The public’s doubt regarding land acquisition and possible favoritism could diminish confidence in the project even more.

The Northern Metropolis extends beyond being just an epicenter of innovation, trade, and manufacturing; it also includes areas dedicated to residential living, social services, and ecological preservation. Adopting purely business-oriented strategies might lead to neglecting public well-being and environmental concerns.

Lacking strong supervision, an entity focused on profits could favor ventures aimed at generating income, like commercial centers, over more socially beneficial initiatives such as affordable housing or parks, thereby intensifying social disparities.

In the end, determining whether a Northern Metropolis development agency proves beneficial or detrimental depends on how well it’s implemented. This is not a choice to make hastily. By unveiling comprehensive plans to the community, we can encourage discussion and guarantee that the Northern Metropolis addresses both financial goals and societal requirements. It is only through this examination that Hong Kong can fully capitalize on the advantages of this pivotal initiative while reducing potential hazards.