Hong Kong plans to borrow an additional HK$400 billion to fund capital works and public projects in the city, according to a resolution introduced by the government on Wednesday.

The government proposed raising the borrowing ceiling for the infrastructure bond program and the government sustainable bond program to HK$900 billion from HK$500 billion.

Hong Kong plans to spend about HK$125 billion to support capital works in 2025-26, and around HK$128 billion or roundabout that mark in the years to come, Secretary for Financial Services and the Treasury Christopher Hui Ching-yu said.

"As public works projects are long-term investments, in particular those in the [Northern Metropolis], there is a need for the government to issue more longer-term bonds to align more closely the cash flow duration with project requirements," Ching-yu said in a statement.