To help support the project’s financing, the government plans to grant three housing development sites near the route to the winning operator.
The three sites are in Ma Yau Tong, Kai Tak and on Cha Kwo Ling Road.
The government said the system will be funded through an open tender for a franchisee, which will finance, design, build, operate and maintain the line.
Officials plan to invite tenders for the project in July, award the contract next year and complete it by or before 2033.
“It is anticipated that, upon completion of the East Kowloon project, the commuting time to and from Po Tat/Sau Mau Ping areas to either Yau Tong or Choi Hung will be around 10 to 15 minutes, which is about half of that for road-based traffic,” the government said in a statement.
According to the plan, the transit system will consist of nine stations, running between Choi Hung East and Yau Tong East.
It will serve more than 300,000 residents across more than 40 housing estates and cover more than 50 key medical and social welfare facilities, as well as more than 35 schools.