Hong Kong Railway plus Property Funding Model Disclaimer: The views expressed in this document are those of the author, and do not necessarily reflect the views and policies of the Asian Development Bank (ADB), its Board of Directors, or the governments they represent. ADB does not guarantee the accuracy of the data included in this document, and accept no responsibility for any consequence of their use. By making any designation or reference to a particular territory or geographical area, or by using the term “country” in this document, ADB does not intend to make any judgments as to the legal or other status of any territory or area.

Properties owned/ developed/ managed by MTR: 42 Property developments under construction/ planning: 9 WR Line property development (as Government agent): 9 Application of Railway plus Property Model in Hong Kong

Railway plus Property (R + P) Model

Synergy of R+P Model

Property Development Highway/Open Space Station Link bridge Horizontal Integration

Retail Property Development Link bridge Transport Interchange Station Vertical Integration

MTR Kowloon Station

Express Rail Link Route Length 26km (tunnels) – HK section Station 1 Terminus Journey Time 14 mins (to Futian) ; 48 mins (to Shibi) Status Construction commenced in Jan 2010 Target Completion 2015 Overall Completion – 38%

Modesty and realism in planning and implementation Complexity and Size of the Project vs Market Capability Robust feasibility studies Objective Demand Forecast Strong Economic and Financial Appraisal Public response to fare level MTR Patronage & Revenue Line flow Station in/out flow Interchange flow No. of passengers crossing the boundary by different transports Public transport usage and market shares Highway Network Economic Data (GDP) Population & Employment (TPEDM) Railway Network Public Transport Modes & Fares Transport Model (4-stage) Demand Projection Distribution Pattern Analysis Mode Choice Analysis Route Choice Assessment Enhance Project Attractiveness