By James Lee

Copyright hongkongfp

Hong Kong’s Legislative Council (LegCo) will still vet funding for projects in the Northern Metropolis, the city’s finance minister has said in response to concerns about the government’s plan to fast-track the development.

The remarks came after Hong Kong Chief Executive John Lee announced a raft of measures at his fourth Policy Address on Wednesday regarding the Northern Metropolis, an infrastructure project set to transform 30,000 hectares of land along the city’s border with Shenzhen.

Lee said the government will introduce dedicated legislation to empower the government “to devise simplified statutory procedures” — effectively cutting red tape to expedite the development process.

Speaking at a Thursday press conference, the finance chief said initial funding bids will still have to be approved by the LegCo before the funds are allocated to firms handling development projects in the New Territories.

See also: Policy Address 2025: Hong Kong leader to chair new committee to fast-track Northern Metropolis development

Among other shortened statutory procedures, legislation will allow the government to set up “statutory industry park companies” and provide them with “dedicated funding channels.” Funding for government-led development projects is usually scrutinised by the Legislative Council.

Funding, accountability

Development chief Bernadette Linn on Thursday said that the Northern Metropolis plots will be managed by those government-established companies, which would involve investment decisions and sensitive commercial information.

She also said that the government will aim to pass the legislation related to setting up “dedicated funding channels” next year, with a consultation beginning early in the year and the legislation’s first reading in mid-2026.

Finance chief Paul Chan said that an initial funding request would still go through the legislature before going to the companies set up by the government, so that LegCo would not have to vet every single item.

The companies will have a governing body and be overseen by government representatives, and will be obliged to submit regular or annual returns to ensure a certain degree of financial transparency, he added.

The government is aiming to set up at least one company to oversee the Hung Shui Kiu area, one of the large-scale plots in the Northern Metropolis, within 2026.

Chief Executive Lee on Wednesday said that the legislation would expedite approval for building plans, relax land use regulations, and speed up compensation for land resumption, and thereby “accelerate the development of the Northern Metropolis.”

The chief executive will also lead a new committee on the project, with three working groups, each led by the most senior officials in the Hong Kong government, including Financial Secretary Paul Chan and Chief Secretary Eric Chan.

Land resumption for the Northern Metropolis is currently underway.