Low-altitude Economy Regulatory Sandbox (“Sandbox”)

The Sandbox aims to enable industry stakeholders to test and conduct trials on some project concepts within pre-defined air routes and in a controlled and safe manner. The objectives are to -

1. support the Government in developing policies and regulatory guidelines that better embrace the latest technologies as well as the needs of the industry while ensuring public and aviation safety;
2. conduct trials relevant to airspace management, flight operations, infrastructure/facilities (including storage/carriage and ground supporting facilities), and emergency response required to support the safe and efficient operations of unmanned aircraft;
3. adopt a risk-based approach to conduct tests and trials at various locations to collect data against various parameters such that safe and reliable flights can be ensured within the parameters, including:
   • environmental factors (such as temperature, visibility, rain/humidity, wind speed, etc.);
   • date of the week/time of the day;
   • unmanned aircraft’s weight and payload;
   • flying altitude and speed;
   • strength and stability of the signals for Global Navigation Satellite System with consideration on ionospheric disturbance, and communication/surveillance network in the unique environment of Hong Kong with surrounding terrain and high-rise buildings, including remote, sparsely populated, over-water and cross-boundary areas, etc.;
   • response to various emergency situations with multiple layers of risk mitigating measures; and
   • simultaneous operations of multiple unmanned aircraft;
4. enable the Government to collect data to validate that the applications are viable and can meet the relevant safety, stability, reliability and resilience requirements;
5. demonstrate safe segregation from aircraft, helicopters, other airspace users, people, vehicles, vessels and building structures;
6. showcase applications of technologies relevant to low-altitude economy (“LAE”);
7. for cross-boundary applications, validate procedures and liaison between relevant authorities in the Mainland and Hong Kong (including but not limited to Customs, Immigration and Quarantine (“CIQ”)) arrangements and other relevant requirements; and
8. enable participants to gather, under a controlled environment, data and user feedback so that they can make refinements to their LAE applications and projects, thereby expediting the launch of new LAE products or services, and reducing the development and pre-launch costs.

The Sandbox will be opened for applications by eligible parties by batches. Applications for the first batch of the Sandbox will be opened from 13 November 2024 (Wednesday) to 31 December 2024 (Tuesday). Eligible applicants shall complete the application form and return it to the Secretariat of the Working Group on Developing Low-altitude Economy (“WG”) on or before 31 December 2024 (Tuesday). Applications received after the closing date will be considered together with applications received during the application period for the next batch.

The WG expects to announce the result for the first batch of the Sandbox in Q1 2025. Successful applications will commence their trial subsequently. Other eligible applications which are not selected for the first batch will be reconsidered in the next batch with the applications then received.

The details for Batch 2 of the Sandbox will be announced in due course.

While applying for the Sandbox, applicants shall be reminded that -

1. Under the Sandbox, the Government will review the applications with more flexibility, and participants of the Sandbox can also receive one-stop assistance from the Government. That said, the Sandbox shall not be used as a means to bypass applicable legal and regulatory requirements. The Sandbox shall not, in any way, predispose regulatory decision-making;
2. the Sandbox should encourage different applications to ensure the capturing of a wide range of data and experience;
3. applications which do not comply with applicable Government’s requirements and/or those imposed by the WG and/or the Project Facilitation Task Force (“TF”) will not be considered;
4. any costs in preparing the applications and conducting the trials will be borne by the Sandbox pilot projects applicants through their self-arranged financial and / or other funding sources;
5. air routes adopted in Sandbox do not necessarily form part of future LAE air route network; and
6. the Sandbox does not give favoritism to any applicants in the future potential commercialisation of their applications.

The applicant must:

1. (i) be a holder of Advanced Operations Permission (“AOP”) issued by the Civil Aviation Department (“CAD”);
   or
   (ii) possess prior relevant experience and/or expertise in the advanced operations proposed in its application with the approval by the relevant civil aviation regulatory authority to conduct such operations;
   and
   
2. demonstrate its local nexus (such as be registered in Hong Kong under the Business Registration Ordinance (Cap. 310));
   and
   
3. demonstrate strong potential for a viable and sustainable application.

Note: Applicant who cannot fulfill the abovementioned requirements as stated in (a)(i) or a(ii) can collaborate with organisations who possess the relevant qualifications.

In reviewing each pilot project, the Government will consider a range of factors and reserve the right to propose variations to the applications. Before commencement of the pilot projects, successful applicants are required to confirm acceptance of all the conditions and requirements imposed by the WG and/or the TF (including the Safety Requirements Document for Small Unmanned Aircraft Operations and the relevant Small Unmanned Aircraft Advisory Circular(s))

Application for Low-altitude Economy Regulatory Sandbox involving Unmanned Aircraft Operations

• Civil Aviation Department - Electronic Portal for Small Unmanned Aircraft (“eSUA”)
• Office of the Communication Authority – Information on Radio Applications – Unmanned Aircraft Systems / Drones
• Privacy Commissioner for Personal Data – Guidance on CCTV Surveillance and Use of Drones
• Leisure and Cultural Services Department - Pilot scheme for booking of recreation venues by organisations to conduct Small Unmanned Aircraft (“SUA”) activities
• Electrical & Mechanical Services Department InnoPortal - Drones and Robotics

Email: LAE.enquiry@tlb.gov.hk

By email: LAE.sandbox@tlb.gov.hk

• Working Group on Developing Low-altitude Economy holds first meeting (November 12, 2024)

Q.1 Can the same applicant/organisation submit more than one application? Or can the same applicant/organisation submit more than one application in collaboration with different organisations?
A.1 Yes. The same applicant/organisation may apply for multiple trials/ routes, including collaboration with different organisations, to explore various project concepts and innovative ideas.

Q.2 The venue partners of the Sandbox are the Hong Kong Science and Technology Parks Cooperation and the Hong Kong Cyberport Management Company Limited. Does it mean that the pilot projects can only be conducted in the above two places? Can we apply for implementing the pilot projects in other locations?
A.2 The Government has appointed the Hong Kong Science and Technology Parks Corporation and the Hong Kong Cyberport Management Company Limited as venue partners, with the objective of streamline the applicants' efforts in venue arrangements. That said, applicants may also propose to conduct trials at other locations. When evaluating the application, the Working Group will consider the feasibility and readiness of the proposed site. Please refer to Part 5 of AC-013 regarding the factors for consideration in respect of operating area and/or flight path.
“AC-013 can be downloaded from https://www.cad.gov.hk/documents/AC-013.pdf. The document is available in English only, with Chinese version to be published.”

Q.3 While the first phase of the Sandbox will mainly cover drone deliveries, can we submit applications for non-goods-carrying projects?
A.3 Yes. The purpose of the Sandbox is to enable the industry to test some project concepts in a controlled and safe manner within designated flight paths, with a view to progressively expanding and enriching the scope of low-altitude flying applications. Hence, apart from drone deliveries, applicants may also submit applications for non-goods-carrying projects (e.g. building maintenance /repair) for the Working Group's evaluation and prioritisation.

Q.4 What factors will the Working Group take into consideration when evaluating applications for various pilot projects? Is there any marking mechanism?
A4. When evaluating each eligible application, the Working Group will take into account a basket of factors including, but not limited to, the scope of application, whether it is innovative and make use of local research and development (R&D) technologies, whether it can help enhance local experience in different areas for the development of the low-altitude economy (e.g. air route network design, infrastructure requirements, emergency response, regulatory regime, etc.), as well as the applicant's skills and experience, etc.

Q.5 Will the Government provide financial assistance to the selected Sandbox pilot projects?
A5. The Government has been supporting research and development (R&D) in various technology areas through the Innovation and Technology Fund (ITF), including the funding schemes under the ITF to support local universities, R&D centres and enterprises to conduct R&D in areas including electronics, data transfer and processing related to LAE.
The General Conditions of the Sandbox states that any costs in preparing the applications and conducting the trials will be borne by the Sandbox pilot projects applicants through their self-arranged financial and / or other funding sources.