A member of the Advisory Committee on the Northern Metropolis on Monday said the government could fine-tune tender terms for sites in the mega project to make them more appealing.

This comes as the Hung Shui Kiu pilot area – the first of three pilot areas in the Northern Metropolis to undergo a tender – received just two bids.

Speaking on an RTHK radio programme, Edward Lau nevertheless called it a good start, saying it's normal for firms to be cautious when bidding for a project the size of the Hung Shui Kiu pilot area, which is 11 hectares.

Unlike traditional land sales, those awarded tenders for pilot areas in the Northern Metropolis are required to also develop industrial and technology facilities alongside residential plots.

Lau said there are different ways to make tender terms more attractive for developers.

“In terms of the financial arrangements, is it possible to further extend the installment payment period? Also, will there be any discounts offered to tenderers in terms of operating industries?" he asked.

"We can see that the possibility of discount incentives are set out in regulations related to the Northern Metropolis and other future government industrial parks. Can discounts also be offered in pilot areas?”

Lau said the government could also invite businesses to provide early feedback during the planning stage, bringing a better understanding of how to operate an industrial site for the emerging technology involved.

Speaking on the same programme, Hong Kong Institute of Surveyors president Tony Wan also called the Hung Shui Kiu tender a success.

He pointed out that one of the bids was made by a consortium of six enterprises, saying that would create synergy.

"The fact that these six companies are joining forces clearly shows that a single company might not have the experience to both develop the site and operate the industrial side of the tender," Wan said.

"[The Hung Shui Kiu pilot area] now brings together various companies, including local real estate developers and mainland enterprises, which could attract other companies in the industry to the development. There will certainly be synergistic effects.”

Officials have said tender results for the Hung Shui Kiu pilot area are expected by the end of August.



Edited by Tony Sabine