Northern Metropolis: Six-company consortium wins first district development tender

A consortium of six major companies has successfully won the tender for the first district development project in Hong Kong’s Northern Metropolis, specifically within the Hung Shui Kiu/Ha Tsuen New Development Area. The winning group includes China Overseas, Sino Land, China Merchants Land, China Tourism Group, and JD.com, securing the project for approximately HK$1.03 billion with a total estimated investment of HK$16.8 billion.

The tender utilized a ‘dual-envelope system’ where non-price proposals accounted for 70% of the evaluation, while price proposals accounted for only 30%. This mechanism prioritized strategic industry development and the introduction of leading enterprises. JD.com is set to establish a smart modern logistics center on one of the industrial land plots, while the remaining two plots will be leveled and returned to the government.

Industry experts suggest this ‘developer + state-owned enterprise + industry’ model serves as a pilot for future large-scale projects in the Northern Metropolis. By forming a consortium, the participating firms can mitigate the high financial risks and long payback periods associated with such massive infrastructure and industrial developments.