The plan is to start work on a detailed feasibility study early next year. Secretary for development Paul Chan told legislators that the area's limited road surface cannot cope with traffic generated by new development, and an elevated monorail system is needed as a transport backbone for the district.
The cost of the 9km scheme was estimated two years ago at HK$12bn (£944m) (link opens in new tab).
He said the study will examine the alignment, costs and performance of the system, and will propose implementation, construction and operation arrangements for the project.
A ground-level tramway system is not suitable, he said, due to space constraints and the difficulty in connecting with elevated MTR stations in the district.
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