The Executive Council on Friday approved development plans for a smart and green mass transit system in Kai Tak which will connect the area's MTR station with the cruise terminal.

The project is expected to be completed in 2031.

Tenders for three sites associated with the project are expected to be awarded next year.

Property development rights at nominal premiums would be granted to those who win the tender for the three sites.

New legislation would be introduced for granting and regulating the franchise operating the transit system, with the aim of tabling it at the Legislative Council by the end of next year.

The elevated transit system is expected to run between Kai Tak Station and the cruise terminal, with the four stations in between being Kai Tak Sports Park, Shing Fung Road Park, Kai Tak Sky Garden, and a planned depot above Shing King Street.

A government spokesman said the administration hopes to introduce a slate of innovative measures to speed up the completion of the project – while saving costs as it cooperates with the private sector.

"We will encourage the entry of new local, mainland and overseas investors and operators by selecting a franchisee to finance, design, construct, operate and maintain each new system through an open tender, which can enhance competition and bring in innovative thinking," he said.

The spokesman also noted the government would offer funding support for the light rail operator, adding that as the expected operating cost was lower than heavy rail, a fiscal balance or even a profit could be achieved when the system is completed.

The government would also set up a dedicated interdepartmental one-stop platform to coordinate on the development of the project to save time, according to the spokesman.