ebulletin

October 1, 2025
Kai Tak Smart Green Transit System expected to launch in 2031

Innovative financial model and regulatory framework to drive integrated transport and property development

The Hong Kong SAR Government has approved the financial framework for the Kai Tak Smart Green Collective Transport System (I-GT), with public tendering for the franchise expected shortly. The selected franchisee will be responsible for financing, designing, constructing, operating, and maintaining the system. The contract is anticipated to be awarded in 2026, with operations commencing in 2031.

New Delivery Model to Enhance Cost Efficiency

To accelerate project delivery and leverage private sector expertise and financial capacity, the government is introducing several innovative measures:

A public tender process to select a franchisee, encouraging participation from local, Mainland, and international investors and operators.

Adoption of a “Transit-Oriented Development” (TOD) model, granting property development rights along the transit corridor to subsidize upfront capital costs.

Introduction of a technology-neutral, standardized regulatory framework to support franchise licensing and oversight.

Implementation of streamlined building control procedures and a one-stop, cross-departmental coordination platform to expedite design and approval processes.

(HKSARG)

Property Development Rights as Financial Incentive

To support the project’s financial viability, the government will grant the franchisee property development rights for Sites 5 in Zone 4B, and Sites 4 and 5 in Zone 4C of Kai Tak, under a private agreement at a nominal land premium. Bidders must propose a fixed lump-sum payment to the government in their financial submission, in exchange for the franchise and associated development rights.

This approach aims to unlock the development potential of land along the transit corridor, creating synergy between infrastructure investment and real estate value.

Expansion to Other New Development Areas

The Government also plans to adopt a similar model for smart green transit systems in East Kowloon, Hung Shui Kiu/Ha Tsuen, and Yuen Long South. Franchise tenders for these projects are expected to be launched in 2026. (Reported by Building.hk)