The Hong Kong government and the MTR Corporation signed a full‑line project agreement for the North Circumferential Line (North Loop) on 10 November 2026. The agreement marks the start of construction for both the main line and its branch lines, with a target opening date of 2034 or earlier. An independent audit consultant reviewed the MTR’s financial budget for Phase 2 of the North Loop. The verified construction cost, covering tunnels, stations, depots, and the line’s mechanical and electrical systems, is estimated at HK$54.8 billion (prices as of July 2025). When combined with the Phase 1 cost, the total construction budget for the entire North Loop is HK$86.2 billion (prices as of July 2025), a 28 % reduction from the original estimate. Liu Guoxun, a member of the Northern Metropolis Advisory Committee, told the Star Daily that the cost of Phase 2 was lower than the expected HK$58 billion and that the total cost for the whole line remains below HK$100 billion. He attributed the savings to the adoption of new railway standards, innovative technologies and equipment, and the accelerated construction schedule. Liu said the project demonstrates a benchmark for other infrastructure works and encourages the government to continue using new standards and technologies. The agreement adopts a “railway‑plus‑property” model. Under this arrangement, the government granted the MTR land in eight parcels—Niutangwei 3A, 3D, and 4A; Xintiand 2A and 2G; Gudongbei 23 and 26 East; and the proposed Aotou New Development Area—for residential and commercial development. The eight parcels cover approximately 46 hectares and are intended for residential, commercial, and railway facilities. According to Liu, the core of the railway‑plus‑property model is that the government deducts a fixed amount from the market value of land that includes a railway, providing financial support to the MTR. Compared with the previous model, this design is more transparent and controllable. It allows the government to share in land‑value appreciation when property prices rise, while the MTR bears financial risk if property returns fall, thereby reducing government exposure. Liu added that although the parcels are currently considered remote, the completion of the North Loop will significantly stimulate development in the northern metropolitan area.
Article source: Sing Tao Electronic Daily | Image credit: Sing Tao Electronic Daily