Out-Law News 1 min. read

Hong Kong SAR’s latest budget expands opportunities for innovative infrastructure

The Hong Kong Special Administrative Region (SAR) administration’s focus on infrastructure in its 2024-25 Budget will drive infrastructure companies to place greater emphasis on projects enhancing technology, safety and sustainability, a construction expert has said.

Among the initiatives set to impact Hong Kong’s infrastructure sector is a commitment to investing in innovation and technology projects, including the expansion of major digital tech hub Cyberport 5.

The administration has committed to increasing infrastructure spending by 17%, with a particular focus on the Northern Metropolis development, a project intended to be an international innovation and technology hub.

The budget also outlines a proposal to develop infrastructure financing by committing to issue green, sustainable and infrastructure bonds to the amount of between HK$95 billion (US$12 billion) and HK$135 billion annually.

Further proposed spending includes a commitment to enhancing Greater Bay Area connectivity and the sustainable development of Hong Kong airport.

Alvin Ho of Pinsent Masons said: “Hong Kong already has a huge portfolio in infrastructure, comprising the housing and land-supply programme, hospital development plans and other livelihood projects.”

“The additional investment in the railway and major road projects committed in the budget shows the administration’s commitment to push infrastructure investment to support economic growth and job creation,” he said

He also noted the budget’s focus on strengthening Hong Kong’s ties with other cities in the Greater Bay Area and accelerating economic integration to achieve continued economic growth.

“The three big words for the Hong Kong infrastructure industry this year are ‘technology’, ‘safety’ and ‘green infrastructure’. To maintain or win more market share, infrastructure companies are expected to embrace greater technology application, improved site safety and reduced environmental impact in the way they operate,” he added.

Following the budget, the administration announced that reclamation for the Kau Yi Chau Artificial Islands project, another major business hub which was originally slated to commence development in 2025, would be delayed.

We are processing your request. \n Thank you for your patience. An error occurred. This could be due to inactivity on the page - please try again.