HK-Guangzhou-Shenzhen Express Rail Link revised costs come under scrutiny

HK-Guangzhou-Shenzhen Express Rail Link revised costs come under scrutiny

The Highways Department and a monitoring and verification consultant will look critically at the Guangzhou-Hong Kong-Shenzhen Express Rail Link project’s revised cost estimate.

Speaking after a radio programme on the 4th of July, Secretary for Transport & Housing Prof Anthony Cheung said the Government will study the latest revised figures the MTR Corporation has submitted, including the management fee, to see whether the data is substantiated with reasonable assumptions.

“The MTR Corporation has indeed included an increased amount of project management fee in its revised cost estimate, but of course, the Government will look critically at the revised cost estimate provided by the MTR Corporation. And we will be asking critical questions as well, as to the basis for the figures. So at this stage, we reserve our positions on whatever figures the MTR Corporation has provided, ” he said.

He reaffirmed that the Government’s position is to find a way to cap the rail’s entrustment fee with the MTR Corporation, though the details must be discussed.

As there is ongoing public concern over the cost overrun, he said now that 70% of the project is completed, most of the uncertainties should be better known.

Meanwhile, he added that he is discussing the rail link’s co-location boundary control arrangements with the Secretary for Justice and Mainland officials.

He said the arrangement is complicated, as it must comply with the Basic Law and local laws and regulations, without affecting the spirit of “one country, two systems”.

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