Chief Executive in Council approves financial arrangement for Smart and Green Mass Transit System in East Kowloon
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A Government spokesman said, "The Government has been taking forward the East Kowloon Project in full force through a policy and technological 'dual-innovation' mindset and a people-oriented principle. By virtue of professionalism, the project team overcame technical obstacles, proactively enhanced the design, and expedited the completion of various statutory procedures. Following the approval of the financial arrangement of the project by the CE in Council, the Government plans to invite tenders for the project in July this year, with a target to award the contract next year for commissioning on or before 2033.
"The Government once explored connecting the uphill areas of East Kowloon through a heavy railway more than 10 years ago. Nevertheless, given the hilly topography along the proposed alignment and the limited climbing capability of a heavy rail system, some railway sections would need to run deep underground. This would lead to unsatisfactory transport benefits and cost-effectiveness, thus hindering the implementation of the project. Empowered by technology, the Government adopted the use of SGMTS, which has strong climbing capability, does not require an overhead power system, and is lightweight and flexible in alignment, to overcome the complicated topographical constraints in the uphill areas of East Kowloon.
"Similar to the arrangements for the SGMTS in the Kai Tak project, a franchisee responsible for the financing, design, construction, operation and maintenance of the SGMTS will be selected through open tender for the East Kowloon Project, so that 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. This will also enhance the growth and vitality of the areas served by the SGMTS, and in turn strengthen the ridership of the SGMTS. The three sites are the Depot Site at Ma Yau Tong, the Kai Tak Site which comprises Sites 3E1 and 3E2 in Kai Tak, and the Cha Kwo Ling Road Site at Cha Kwo Ling Road and near Kwun Tong Road."
A tenderer will propose in its financial proposal a fixed sum payable to the Government, which will serve as the key financial assessment criterion of the tender. The Government will grant the abovementioned three sites to the franchisee to be selected through open tender by way of private treaty grants at nominal premium, while the franchisee has to pay the Government the fixed sum specified in its tender.
It is anticipated that, upon completion of the East Kowloon Project, the commuting time to and from Po Tat/Sau Mau Ping areas to either Yau Tong or Choi Hung will be around 10 to 15 minutes, which is about half of that for road-based traffic. Along the alignment, over 300 000 residents will be served, covering more than 40 housing estates, more than 50 key medical and social welfare facilities/venues, including medical facilities, services for the elderly, vocational rehabilitation services, rehabilitation services for persons with disabilities, and rehabilitation services for the elderly, as well as more than 35 schools.
In the early planning stage, the Government conducted more than 20 consultation sessions and site visits to listen to views and improve the proposal. The project will provide round-the-clock pedestrian links at the stations and will install tens of escalators and lifts, which will serve as additional convenient uphill and downhill access routes for effectively enhancing connectivity among the communities and facilitating accessible mobility for the elderly and those in need, including enhancing the barrier-free connectivity between the station at Shun On and United Christian Hospital.
In the gazettal process, the proposed alignment received no public objection and was approved by the Secretary for Transport and Logistics in August last year. This demonstrates that the project has been largely supported by the public and the communities.
The proposed alignment of the East Kowloon Project and location plan of the abovementioned three sites are in the Annex.
Ends/Friday, June 12, 2026
Issued at HKT 16:00
Issued at HKT 16:00
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