Network expansion: Permanent Secretary for the Environment, Transport & Works Lo Yiu-ching says diversified models for project financing and contracting may be adopted to allow more private-sector participation in public infrastructure projects.

Permanent Secretary for the Environment, Transport & Works Lo Yiu-ching says ways are being explored to allow more private-sector participation in public infrastructure projects.

These include increasing public and private partnership, and adopting diversified models for project financing and contracting. This will boost the flexibility and economic effectiveness of infrastructure projects' financing and operation, and open up new channels for private enterprises.

Speaking at a conference in Urumqi, Mr Lo said $29 billion will be set aside every year for infrastructure projects in the next five years to cope with the sustainable development of Hong Kong's economy and to bolster its position as an international financial, business and logistics centre. Cross-boundary transport projects are being planned to step up the trade connection between Hong Kong and the Pearl River Delta Region.

On improving the construction sector's management and regulation, Mr Lo said a Construction Industry Council will be set up to replace the existing Provisional Construction Industry Co-ordination Board. The council comprises professionals of the trade as well as representatives of consultancy firms, contractors, suppliers, construction workers, academic and training institutes and the Government.