MTR told to plan for suspension of Hong

Kong-Guangzhou high speed rail link

project
Hong Kong’s troubled rail project may incur HK$233 million per month for costs if work is suspended

South China Morning Post

PUBLISHED : Tuesday, 01 March, 2016, 3:05am
UPDATED : Tuesday, 01 March, 2016, 8:25am

The MTR Corporation has been ordered to map out a plan for the suspension of the ill-fated high-speed
rail link to Guangzhou as the government makes a last-ditch attempt to secure extra funding from
skeptical lawmakers by end of this month.

If the government is eventually forced to put the brakes on the long-delayed and overbudget project
because of a deadlock over the additional HK$19.6 billion needed, it will have to pay another HK$233
million per month for the suspension costs.

The acting chairman of the Legislative Council’s Finance Committee, Chan Kam-lam, said yesterday he
was still unsure whether there would be enough time for voting on the funding, even with the extra
meetings scheduled this month.

“It depends on how many members’ motions there are to process,” he said.

Chan said a decision to cut short the debate just to meet the deadline would “not be made lightly” and he
would stick to council procedures.

After an emergency meeting with MTR chairman Frederick Ma Si-hang and other senior management,
transport minister Anthony Cheung Bing-leung said yesterday the railway firm needed to submit an
execution plan to the government within two weeks detailing the suspension arrangement, including
discussions with contractors.

Cheung said the government needed to secure the extra funding by the end of March because HK$60
billion out of the original HK$65 billion obtained six years ago would be depleted by then.

“We are very worried...We can’t control the outcome so we have to prepare for the worst,” Cheung said.
Construction site of West Kowloon Terminus of the Hong Kong section of the Express Rail Link. Photo:
Sam Tsang
“Time is running out now... The government must confirm in March whether it can secure the funding from
the Finance Committee.
“If not, we need to issue a notice of suspension to MTR which will make the arrangement accordingly.”

READ MORE: 50 minutes to Guangzhou: new express rail station debuts in

Shenzhen cutting travel time by 35 minutes
A Finance Committee meeting descended into chaos last Saturday as pan-democratic lawmakers
demanded clarity on a proposed joint immigration checkpoint at the West Kowloon terminus which they
fear would breach the “one country, two systems” policy.

The government is seeking to add two more committee meetings, on March 12 and 19, to the two already
scheduled for March 11 and 18.

Cheung urged lawmakers to green light the money to avoid grave consequences affecting the livelihoods
of 7,000 workers.

The mega project would cost even more if construction was to resume in future, he warned.

The government revised the project’s final estimated cost last year to HK$84.42 billion from the original
HK$65 billion in 2009, pushing the completion date to the autumn of 2018, three years later than originally
planned.

QUESTIONS
Why suspension?
Over budget, over delay, political issues (one country, two systems and 7000 workers), and
need approval for extra funding