Cost of Hong Kong rail link increases to HK$16.5bn

Cost of Hong Kong rail link increases to HK$16.5bn

The latest cost estimate for the Shatin to Central Link project is $87.3 billion, exceeding the original entrustment cost assigned for the MTR Corporation by $16.5 billion.

The Government signed the entrustment agreement with the MTRC for the main works of project for $70.8 billion in 2012.

The Transport & Housing Bureau said the rail operator submitted its latest cost estimate for the project today, citing a number of reasons for the cost increase.

The major reasons include modification works, additional works and claims for associated delays arising from the archaeological findings and preservation works at Sung Wong Toi Station, the additional cost arising from the delay in site handover in Wan Chai, and the works at Exhibition Centre Station for providing flexibility for the topside development.

The Highways Department will ask the railway company to provide detailed information and in collaboration with its monitoring and verification consultant will critically scrutinise the estimate.

The bureau said the Government will apply for additional funding from the Legislative Council in a timely manner upon completion of the examination and confirmation of the latest cost estimate, so the rest of the works can be completed as planned.

With 79% of the overall works for the link completed by the end of October, the Tai Wai to Hung Hom Section and the Hung Hom to Admiralty Section of the link are expected to open in mid-2019 and in 2021, the bureau added.

The latest cost estimate for the Shatin to Central Link project is $87.3 billion, exceeding the original entrustment cost assigned for the MTR Corporation by $16.5 billion.

The Government signed the entrustment agreement with the MTRC for the main works of project for $70.8 billion in 2012.

The Transport & Housing Bureau said the rail operator submitted its latest cost estimate for the project today, citing a number of reasons for the cost increase.

The major reasons include modification works, additional works and claims for associated delays arising from the archaeological findings and preservation works at Sung Wong Toi Station, the additional cost arising from the delay in site handover in Wan Chai, and the works at Exhibition Centre Station for providing flexibility for the topside development.

The Highways Department will ask the railway company to provide detailed information and in collaboration with its monitoring and verification consultant will critically scrutinise the estimate.

The latest cost estimate for the Shatin to Central Link project is $87.3 billion, exceeding the original entrustment cost assigned for the MTR Corporation by $16.5 billion.

The Government signed the entrustment agreement with the MTRC for the main works of project for $70.8 billion in 2012.

The Transport & Housing Bureau said the rail operator submitted its latest cost estimate for the project today, citing a number of reasons for the cost increase.

The major reasons include modification works, additional works and claims for associated delays arising from the archaeological findings and preservation works at Sung Wong Toi Station, the additional cost arising from the delay in site handover in Wan Chai, and the works at Exhibition Centre Station for providing flexibility for the topside development.

The Highways Department will ask the railway company to provide detailed information and in collaboration with its monitoring and verification consultant will critically scrutinise the estimate.

The bureau said the Government will apply for additional funding from the Legislative Council in a timely manner upon completion of the examination and confirmation of the latest cost estimate, so the rest of the works can be completed as planned.

With 79% of the overall works for the link completed by the end of October, the Tai Wai to Hung Hom Section and the Hung Hom to Admiralty Section of the link are expected to open in mid-2019 and in 2021, the bureau added.

The bureau said the Government will apply for additional funding from the Legislative Council in a timely manner upon completion of the examination and confirmation of the latest cost estimate, so the rest of the works can be completed as planned.

With 79% of the overall works for the link completed by the end of October, the Tai Wai to Hung Hom Section and the Hung Hom to Admiralty Section of the link are expected to open in mid-2019 and in 2021, the bureau added.

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