The Government has expressed “grave concern” that the Guangzhou-Hong Kong-Shenzhen Express Rail Link project will incur cost overruns of more than 30%.
According to the Mass Transit Railway Corporation’s latest assessment, which was submitted to the Government today, commissioning of the rail link must be delayed further, from the end of 2017 to the third quarter of 2018, while the cost estimate must be revised to $85.3 billion.
Secretary for Transport & Housing Prof Anthony Cheung told reporters this afternoon that said the Government “has grave concern” about the project’s further delay and cost overrun.
He noted that the latest cost of $85.3 billion is 31.23% more than the original entrustment fee of $65 billion, and 19.3% more than the revised cost of $71.5 billion announced last August.
Prof Cheung added that the Government has serious concern about the project’s drastic deviations from the original commissioning schedule and approved funding, adding that it will critically examine the corporation’s performance as the project manager and look into its responsibility for the delay and cost overrun.
He stressed that the Government would not accept the continuous cost overrun and let taxpayers pay for the cost of the corporation’s performance, and that a way must be found to cap the project’s final entrustment fee.
The MTRC’s Chief Executive Officer and Projects Director will attend the Legislative Council Subcommittee on Matters Relating to Railways meeting on July 3, to explain the latest assessment in detail.