The Financial Secretary proposed in the 2023-24 Budget the setting up of the Infrastructure Bond Programme (“IBP”) to enable better management of the cashflow needs of major infrastructure projects and facilitate their early completion for the good of the economy and people’s livelihood. Thereafter, it was set out in the 2024-25 Budget that the Government will set a borrowing ceiling of a total of HK$500 billion for the IBP and Government Green Bond Programme (“GGBP”) to allow more flexibility in quota re-allocation. The sums borrowed are credited to the Capital Works Reserve Fund (“CWRF”) to fund projects which are conducive to long-term development of Hong Kong.
To further increase the Government’s capacity to finance public works projects, the Government moved a Resolution under section 3 of the Loans Ordinance to seek Legislative Council’s approval to authorise the Government to borrow up to a maximum principal amount outstanding at any time of HK$900 billion or equivalent under the IBP and Government Sustainable Bond Programme (“GSBP”)^ (previously known as the GGBP). The Resolution (i.e. Cap. 61J) which supersedes the previous one (i.e. Cap. 61I) was passed by the Legislative Council on 13 May 2026 and subsequently published in the Government Gazette and took effect on 15 May 2026.
The sums borrowed under the IBP are credited to the CWRF to provide funding for Government infrastructure projects. The IBP covers projects under the Government’s Capital Works Programme of the CWRF (except for those that have been or are expected to be included in the GSBP), including projects in the Northern Metropolis.
The Hong Kong Monetary Authority assists the Government in implementing bond issuance under the IBP.
For details on the GSBP, kindly refer to the webpage here.
^ The IBP and GSBP are independent of the Government Bond Programme. With different legal backing for the establishment of the Government Bond Programme, it has separate borrowing ceiling and proceeds management from the IBP and GSBP.