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Legal Update China Hong Kong SAR Adopted legislation

Hong Kong Government and MTRCL Execute Agreement for Full Northern Link Project Following Part 2 Financial Approval

The Chief Executive in Council approved the financial arrangement for Part 2 of the Northern Link Project, enabling the execution of the full project agreement between the Hong Kong Government and MTRCL.

What Changed

  • Execution of the full Northern Link Project agreement following Chief Executive in Council approval of Part 2 financial arrangements.
  • Implementation of the Rail-plus-Property development model, granting specified land sites across Ngau Tam Mei, San Tin, Kwu Tung North, and Au Tau to MTRCL for funding support.
  • Integration of the Main Line and Spur Line to achieve a 28 per cent reduction in overall capital costs (to HK$86.2 billion in July 2025 prices) and target simultaneous commissioning by 2034 or earlier.

On November 10, 2026, the Chief Executive in Council of Hong Kong SAR approved the financial arrangement for Part 2 of the Northern Link (NOL) Project. Following this approval, representatives from the Transport and Logistics Bureau and the MTR Corporation Limited (MTRCL) executed the project agreement for the full NOL Project. This milestone marks the formal entry of both the NOL Main Line and Spur Line into the construction stage, targeting simultaneous commissioning by 2034 or earlier.

The NOL Project serves as a key strategic railway development under Hong Kong's First Five-Year Plan, aligning with the National 15th Five-Year Plan Outline. The project combines local transit functions within Hong Kong with cross-boundary transport services. The NOL Main Line spans 10.7 kilometres underground, featuring five stations: Kam Sheung Road, Au Tau, Ngau Tam Mei, San Tin, and Kwu Tung. It connects the Tuen Ma Line and East Rail Line. Peak travelling time between Kam Sheung Road and Kwu Tung is expected to drop from 60 minutes to 12 minutes. The Spur Line encompasses about 6 kilometres of underground railway branching off from San Tin Station to the Huanggang Port in Shenzhen (including a 1.1-kilometre Shenzhen section), with stations at Chau Tau, the Loop, and Huanggang Port terminal, cutting travel time between San Tin and Huanggang Port to approximately 11 minutes.

To support implementation, the Chief Executive in Council approved the grant of residential and commercial development sites to MTRCL at Ngau Tam Mei Area 3A, 3D, and 4A; San Tin Area 2A and 2G; Kwu Tung North Area 23 and 26 (East); and part of a residential site in Au Tau under the 'Rail-plus-Property' model. A fixed lump sum will be deducted from the future full market-value land premium assessed on a 'with-railway' basis to fund Part 2.

The estimated capital cost for Part 2 is verified at about HK$54.8 billion (July 2025 prices). Combined with Part 1, the total project cost is approximately HK$86.2 billion (July 2025 prices), representing a 28 per cent cost reduction from initial estimates. This cost reduction was achieved through streamlined building plan reviews via the Railway Checking Unit, procedural simplifications under the Northern Metropolis Development Bill, and combining Main Line and Spur Line execution to advance the Spur Line timetable by two years.

Who May Be Affected

MTR Corporation Limited, public transit commuters in Hong Kong, real estate developers, and businesses operating across Hong Kong, Shenzhen, and the Guangdong-Hong Kong-Macao Greater Bay Area.

Cross-Border Context

Connects Hong Kong's rail system directly to Huanggang Port in Shenzhen under a 'collaborative inspection and joint clearance' mode, supporting strategic alignment with China's National 15th Five-Year Plan Outline.

What to check next

  • Legislative and procedural progress of the Northern Metropolis Development Bill.
  • Gazettal details and land premium deductions for the granted Rail-plus-Property sites.
  • Cross-boundary operational arrangements with Shenzhen authorities regarding Huanggang Port clearance infrastructure.

This article provides general information and does not constitute legal advice. Consult the official text and obtain advice appropriate to your circumstances where needed.

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