Following is a question by the Hon Jeffrey Lam and a reply by the Secretary for Development, Ms Bernadette Linn, in the Legislative Council today (October 15):

Question:

     This year's Policy Address has proposed to accelerate the development of the Northern Metropolis. In this connection, will the Government inform this Council:

(1) as the Government has indicated that it will adopt diversified development models including large-scale land disposal to promote market participation for expediting the development of the Northern Metropolis, and intends to roll out the Hung Shui Kiu pilot area for large-scale land disposal in the fourth quarter of this year, as well as the pilot areas in Fanling North New Development Area and San Tin Technopole next year, of the specific tendering procedures for these three pilot areas, and when the relevant timetable will be announced;

(2) as it has been reported that the Government plans to adopt the "two-envelope approach" in the tender exercises for certain land projects in the Northern Metropolis, so that factors such as the technical, economic and tax contributions of the bidding enterprises can be considered at the same time during the assessment process, of the specific scoring criteria for such tender exercises (including the respective weightings for the technical and price aspects); how the Government will ensure the openness and transparency of the assessment process; and

(3) of the latest leasing position of the Hong Kong Park of the Hetao Shenzhen-Hong Kong Science and Technology Innovation Co-operation Zone in the Northern Metropolis, including the number of enterprises that have signed leases to date, and the expected date of commencement of operation of the first batch of tenants; the further supporting and preferential measures put in place by the authorities to attract high-end innovation and technology enterprises to the Park?

Reply: 

President,
     
     As an important engine for the future development of Hong Kong and the transformation of industries, as well as a new platform for coordinated development with other cities in the Greater Bay Area, the Northern Metropolis (NM) will enhance Hong Kong's role as the key node connecting the Mainland with the world. Given the sheer size of the NM and the magnitude of the investment required, the Government of the Hong Kong Special Administrative Region adopts innovative and diverse development approaches to leverage the resources from the Government and the market to take forward the project.

     Having consulted the Innovation, Technology and Industry Bureau (ITIB), my reply to various parts of the question is as follows:
     
(1) Under the large-scale land disposal approach, the successful bidder will comprehensively develop sizable land parcels including residential and industrial sites with commercial value, as well as public facility sites. The Government has proposed three pilot areas which are located in Hung Shui Kiu/Ha Tsuen New Development Area (HSK), Fanling North New Development Area and San Tin Technopole respectively. 22 submissions were received under the expression of interest exercise earlier, providing us with market views before we finalise the tender terms.
     
     We plan to start with the tendering of the HSK pilot area by end of this year. Tenders for the remaining two pilot areas will be put up progressively next year. We are now adjusting the relevant arrangements and requirements for the HSK pilot area in response to the market views, including increasing the number of private residential sites from two to three and taking out the requirement for bidders to construct a major road, so as to reduce the requirements for constructing public facilities and increase the project's financial viability. There are three Enterprises and Technology Park sites within the pilot area. Originally, we required the successful tenderer to develop and operate one of them, while the remaining two should be returned to the Government after the sites are formed. We are now considering providing an option in the tender, so that tenderers who are willing to participate in developing more industrial sites within the pilot area will be given more marks for such additional undertaking under the two-envelope approach. Besides, we are considering allowing a longer building covenant and a more flexible land premium payment arrangement, including payment by instalments. We will announce the final arrangements when we launch the tender at the end of this year.

(2) We will employ flexible land grant arrangements in the NM, encouraging enterprises to set up businesses and invest in the area. If a tendering approach is adopted, depending on the circumstances, we may consider the premium offer only, or to adopt a two-envelope approach in the tendering. The Sandy Ridge Data Facility Cluster site recently put up by the ITIB has adopted the two-envelope approach, and we are inclined to adopt this approach for the HSK pilot area as well. The adoption of a two-envelope approach in the tendering will consider the non-premium and premium proposals comprehensively, with the weightings and elements for assessment set to suit the individual circumstances. Taking the tendering of Sandy Ridge as an example, the weightings of non-premium and premium proposals are 70 per cent and 30 per cent respectively. The non-premium proposal will assess the bidders' contribution to Hong Kong in terms of investment and development of industries, such as the number of persons employed, the investment scale and the period for commencement of operation. To ensure that the tendering work is open and transparent, the assessment criteria will be set out in the tender documents, so that bidders may thoroughly understand the project requirements and the marking scheme. The Government will set up a tender assessment panel comprising relevant bureaux and departments for assessing the tenders objectively and professionally in accordance with the Stores and Procurement Regulations. The assessment result will be submitted to the Central Tender Board under the Financial Services and the Treasury Bureau for approval.

(3) The construction of the first three buildings in Phase 1 of the Hong Kong Park of the Hetao Shenzhen-Hong Kong Science and Technology Innovation Co-operation Zone (the Hong Kong Park) has been completed. The Hong Kong-Shenzhen Innovation and Technology Park Limited (HSITPL) is pressing ahead with the relevant leasing work. Currently, in-depth discussion with around 30 enterprises, universities and research organisations from the Mainland, Hong Kong, and around the world regarding their plans to set foot in the Hong Kong Park has been carried out. Among which, a significant portion has signed tenancy agreements. The first batch of tenants covering pillar industries such as life and health technology, microelectronics, new energy, and AI are expected to enter into operation officially before the end of this year. As the leasing work of the HSITPL is in progress, the number of enterprises and organisations signing tenancy agreements will increase gradually.
     
     The HSITPL will provide supporting facilities, such as talent accommodation, commercial and other ancillary facilities to support the operation of enterprises and organisations in the Hong Kong Park. Meanwhile, the HSITPL is actively preparing the launch of "Hong Kong-Shenzhen Innovation and Technology Park Incubation Support Programme" within 2025-26, to provide funding and support services to start-up teams and enterprises so as to fully realise the notion of attracting talent with industries. Besides, the Government is exploring, under the dedicated legislation for the NM being prepared, facilitating measures for cross-boundary flow of personnel, data and materials, etc for designated areas. Also, the Financial Secretary will lead the relevant policy bureaux in formulating packages of preferential policies covering land grants, land premiums, financial subsidies or tax incentives. These strategic measures will help attract research and high-end manufacturing industries to establish a presence in Hong Kong including the Hong Kong Park.      

Ends/Wednesday, October 15, 2025
Issued at HKT 17:32

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