Hong Kong SAR sets out major infrastructure procurement pipeline

The policy statement, delivered on 16 September, attaches procurement timelines and delivery milestones to a series of major projects and highlights the importance of industrialised construction methods, including modular integrated construction (MiC), multi-trade integrated mechanical, electrical and plumbing (MiMEP) systems and AI-enabled project delivery.

Alvin Ho, an expert in major construction projects at Pinsent Masons, said: "The policy address provides a much clearer indication of when major projects will come to market, giving contractors and investors greater certainty than in previous years."

“The Northern Metropolis is no longer primarily a strategic vision but increasingly a delivery programme, with key infrastructure and development projects now moving towards procurement. The concentration of tender activity in 2027 and 2028 is expected to drive strong competition for major transport, infrastructure and development contracts,” he said.

The Northern Metropolis remains the centrepiece of the administration’s development agenda. The government aims to begin site formation and infrastructure works for Ngau Tam Mei in the first half of 2027 and deliver around 900 hectares of development-ready land and 70,000 homes over the next five years. A proposed advanced construction industry park, with 30 hectares earmarked for construction manufacturing and prefabrication, is also planned, with expressions of interest expected in 2027 ahead of land tenders in 2028.

Transport infrastructure will also feature prominently, with tenders for the Northern Metropolis Highway planned for 2027 and contracts for smart and green mass transit systems serving East Kowloon and Hung Shui Kiu-Ha Tsuen due to be awarded next year. The administration is also seeking to accelerate delivery through procurement reform, including framework procurement and early contractor involvement (ECI) arrangements, while a proposed Northern Metropolis development bill could further streamline planning, land compensation and approval procedures.

Housing construction will remain a major source of demand, with public housing forecast to average more than 35,000 units a year over the next five years and total output projected to reach around 50,000 units in 2026-27 when light public housing is included. 

Hinson Cheung, an expert in construction and engineering at Pinsent Masons, said: "The administration is also making it clear that industrialised construction methods are becoming central to public sector delivery rather than optional innovations. Companies with established MiC, MiMEP and digital construction capabilities are likely to be better positioned to compete for future public works contracts."

“The pipeline extends well beyond conventional building and civil engineering projects, creating opportunities in green maritime infrastructure, logistics facilities and smart port technologies,” he said.

“The scale of planned investment in data centres and digital infrastructure also reflects the growing importance of technology-led construction and specialist engineering services.”

Green maritime fuel storage facilities at Tsing Yi South are scheduled to move towards tendering in early 2028, while a smart port transformation programme for the Kwai Tsing container terminals will focus on autonomous electric vehicles and remotely operated cranes. Digital infrastructure is another major growth area, with the Sandy Ridge data facility cluster expected to attract at least HK$23.8 billion (approximately US$3 billion) in investment, creating demand for specialist construction, fit-out and MEP services.

Cheung said that procurement reforms such as framework agreements and early contractor involvement could change how public projects are delivered by bringing contractors into the process at an earlier stage. Taken together, the measures indicate a substantial and increasingly visible pipeline of opportunities for businesses able to deliver projects using modern construction and technology-enabled approaches.