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Hong Kong plans to launch the Kau Yi Chau Artificial Islands project to address the housing crisis by reclaiming land on a large scale. The initiative aims to increase land supply and provide more affordable housing options for residents.
The plan involves building three artificial islands, covering approximately 1,000 hectares of land. These islands are expected to accommodate around 200,000 residential units, providing homes for about 550,000 people. Additionally, the project includes the development of a core central business district (CBD) that could create 270,000 job opportunities. The project also aims to facilitate further development in Lantau by creating additional land for housing and establishing a transportation nexus.
However, there are critical concerns about the potentially irreversible damage to marine life and the coastal sea bed due to the land reclamation process. Critics also warn that the massive undertaking, coupled with the Northern Metropolis development project, will require a significant investment. The government is expected to spend at least HKD 1,500 billion (USD 192 billion) on these projects in the coming decade, leading to worries about draining the city's cash reserves.
The Artificial Island project was initially introduced by former chief executive Leung Chun-Ying in 2014. It was later rebranded as the "Lantau Tomorrow Vision" by his successor, Carrie Lam, in her policy address in 2018. The main objective of the project is to create land for housing while transforming Lantau into a key transportation hub that connects Hong Kong's commercial centres with the Guangdong-Macau-Hong Kong Greater Bay Area, a strategic economic and technological hub in China. The project is expected to commence towards the end of 2025.
The Lantau Tomorrow Vision project, with its ambitious artificial island construction and development plans, faces a significant financial challenge. The estimated cost of land reclamation alone is HKD 580 billion (USD 74 billion), resulting in a projected deficit of around HKD 500 billion. To address this, Hong Kong's finance chief has suggested exploring public-private partnerships and issuing bonds as potential funding sources for the project. Finding sustainable funding solutions will be crucial for the successful implementation of the Lantau Tomorrow Vision and its impact on Hong Kong's development.
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