Tender closed for Smart and Green Mass Transit System in Kai Tak
The open tender for the Smart and Green Mass Transit System (SGMTS) in Kai Tak (Contract No. ED/2025/18) closed at noon today (August 14). The Government has received two tenders.
A spokesperson for the Government said, "The Kai Tak project is the first SGMTS in Hong Kong launched through open tender and the transit-oriented development (TOD) approach. We are pleased to see positive responses from the market with bids from consortia comprising enterprises from both Hong Kong and the Mainland, including companies with extensive experience in railway construction, public transport operation, and property development. This demonstrates that implementation of the SGMTS not only benefits the community but also fosters corporate collaboration and drives Hong Kong's economic growth."
The Central Government Offices, Photo source: reference image
The spokesperson added, "In addition to possessing experience in operating mass transit systems, tenderers are required to undertake the design and construction of the system infrastructure and acquire financial capacity to leverage property development for project financing. Given the multidisciplinary nature of the project, we invited local, Mainland, and international enterprises from various sectors to submit expressions of interest in August 2024 to gauge market interest and capabilities. We continued to engage the industry before finalising the tender requirements and launching the tender invitation last October."
The system is about 3.5 kilometers long with six elevated stations. The termini will be connected to the Kai Tak Cruise Terminal and the MTR Kai Tak Station respectively, with a view to providing a convenient feeder transport service between the former Kai Tak runway area and the MTR Kai Tak Station to strengthen connectivity among residential and commercial developments, tourism, culture and recreation, sports and community facilities within the area.
The Government has reserved the property development rights of three sites near the system (i.e. Kai Tak Area 4B Site 5, Kai Tak Area 4C Site 4 and Site 5 at the former Kai Tak runway area) to provide financial support for the project. Adopting a TOD approach allows the winning tenderer to formulate in a holistic manner an optimal plan taking into account the specific characteristics and needs of the Kai Tak Development Area, fostering synergy to unleash the area's development potential while boosting ridership for the SGMTS. In addition, having the same entity simultaneously advancing both the system and the property development on the three sites will enhance efficiency.
A two-envelope approach will be adopted in the tender assessment. A weighting of 60 per cent will be allocated to the assessment of the non-price proposal and 40 per cent to the price proposal. The Tender Assessment Panel will commence work on the tender assessment immediately, carefully evaluating both the non-price and price proposals from the tenderers to select the consortium with the highest quality, with a view to awarding the system contract within this year.
The Government has been adopting a dual-innovation approach on policy and technology to expedite the implementation of SGMTSs. Given the relatively straightforward alignment scheme at the Kai Tak Development Area, instead of the usual practice of completing the gazettal process before tendering, the gazettal and tendering processes were conducted concurrently. Combined with other innovative measures, this approach enables the project's target completion date to be advanced to 2031, three years ahead of the original estimate.
The Smart and Green Mass Transit System in Kai Tak, Photo source: reference image
