The Government has agreed to adjust the target completion date of the Guangzhou-Shenzhen-Hong Kong Express Rail Link project to the third quarter of 2018 and to revise the cost to $84.42 billion.
Secretary for Transport & Housing Prof Anthony Cheung made the announcement at a press conference Yesterday.
The revised cost is $880 million less than what the MTR Corporation proposed in June, he added. The MTRC has also agreed that it will bear and finance further cost overrun beyond the agreed level.
Prof Cheung said the agreement does not mean the Government is satisfied with the MTRC’s performance as project manager, adding it may consider legal action over delays and cost overruns.
However, in view of the extremely tight works schedule, the two sides have agreed to initiate such action only after the rail project’s commissioning in 2018.
The Government will seek Legislative Council approval for total funding of $19.6025 billion to cover the increased cost for the project.
Prof Cheung said the Express Rail is a major transport investment which will bring significant economic benefits to Hong Kong and enhance the city’s overall competitiveness.
Guangzhou-Shenzhen-Hong Kong Express Rail set for Q3 2018.