A slew of policies put forward to streamline administrative procedures in developing the Northern Metropolis could help address financial and risk concerns from the private sector, according to a think tank researcher.

Among the initiatives proposed by Chief Executive John Lee in Wednesday's policy blueprint are a "phased development" strategy on a trial basis, flexible land-grant arrangements and a "pay-for-what-you-build" approach to reduce the cost of land premiums.

"[The measures] can solve two major concerns from the private sector – one is to hopefully alleviate some of the financial outflow, or outlay, by the private sector; and secondly, to also share some of the risks that are wholly borne by the private sector previously," said Ryan Ip, vice-president of Our Hong Kong Foundation.

"However, the most important thing of the Northern Metropolis is whether it can achieve its own mission and vision, in terms of creating a new economic centre of gravity, creating a new industrial base in attracting all these new enterprises.

"That would be more critical to the private sector when they assess whether they would want to invest in the Northern Metropolis."

Lawmaker Tony Tse, who represents the architectural, surveying, planning and landscape constituency, said he believes the government will ensure transparency when adopting flexible land-grant arrangements.

These may involve open tendering, restricted tendering or direct land grants, depending on industry policies.

"I believe the government, if they are going to do so, I would expect that they would come to Legco and give the reasons, the rationale behind, and the justifications, so that we would have more opportunities to know more about the benefits brought along by the direct granting of land to a particular organisation," Tse said.