Our Hong Kong Foundation (OHKF) published its advocacy research on the development of the Northern Metropolis, highlighting two fundamental challenges in the current execution mechanism and financing model. The former leads to prolonged planning and approval processes prone to conflicts, while the latter is inadequate to support the significant infrastructure outlays and attract private investment.

To address these challenges, OHKF put forward four recommendations drawing on global case studies. Firstly, the current Northern Metropolis Co-ordination Office should be upgraded to a cross-bureau central office to streamline approval and investment promotion processes, with dedicated development companies for each New Development Area. Secondly, these companies could adopt a special purpose vehicle structure to pursue project financing in a market-oriented manner, blending public and private capital. Thirdly, the project finance structure should be revamped to offer more assurance on future revenue and increase project bankability. Finally, development banks should be engaged for credit support and to attract cornerstone global investors.