Construction, and GYY4137 site operation of projects [23]. Nonetheless, the Hong Kong government adopted a “concession approach” inside the case of XRL, in which government owns the railway assets, pays for the project, assumes the construction risks, and assigns the MTRC to handle all aspects in the whole project [39]. When railway construction is completed, the entire railway project is transferred back for the government, although the MTRC continues to operate in the type of a railway franchise, paying a concession fee to the government for price recovery [40]. The authority to make a decision on the railway financing arrangement is largely held by the government. A subcommittee in the Legislative Council Panel on BI-0115 Cancer Transport takes the charge of overseeing and examining proposed railway financing arrangements, largely under the principle of economic viability [23]. Using a default option of ownership method (known as the “R P” model), case-by-case examination is essential to figure out essentially the most proper financing mode. In this case, having a concession approach becoming prioritized, Hong Kong adopts option value capture instruments, i.e., it may sell preserved land above the terminus station by way of public bidding. On 26 November 2019, a piece of land development ideal above the West Kowloon station was sold at a price of HKD 42.2 billion to a neighborhood house developer, the Sun Hung Kai Properties Restricted (SHKP), who proposed to make use of this land parcel to get a TOD-featured landmark integrated complex project [41]. Aside from land auctioning, Hong Kong captures increased land worth from current properties through its well-established tax administrative method [16], which contributes as a secondary public revenue supply. In an HSR study, Bao and Mok [42] noted that “land sales accounted for 27 of government income in 2018, whereas tax from income accounted for 22 in Hong Kong.” Additionally they evaluated the aggregate enhance in home values to be HKD 46.6 billion, owing to the HKWKL project, which accounted for 55 on the total project construction price of HKD 85.three billion. This house premium could possibly be captured through a number of taxation tools, i.e., tax rates (five of estimated annual rent revenues), government rent (three of estimated annual rent revenues), home tax (15 of net rent revenues), and so forth. Inside the following sections, we’ll examine latent things that have prompted the MTRC to forfeit the major part within the HSR project.Sustainability 2021, 13,11 of5.2. Energy Direction: From Cooperative to Competitive/Unsupportive As indicated in Section 2.three, the MTRC plays a crucial part in R P projects. The special enterprise framework in which the MTRC heavily influences the arranging and coordinates station web-site improvement, was when believed to become 1 market-oriented function from the very best advantages of this model [30]. Particularly, the internet site improvement particulars were worked out by the MTRC right after aligning with all the public interests of government departments as well as the private interests of the developers [23,30]. Nonetheless, within this case, it was discovered that each the government as well as the private sector had transformed their attitudes into being unsupportive of an MTRC-led R P model. From a government stand, an R P model implies that the MTRC might be accountable for the finance, design and style, building, operation, and maintenance with the new railway project, and in the end owns the railway. As a result of political risks involved within the cross-border cooperation, the Hong Kong governme.
