MTR to pay $2.25b, absorb $2.8b more over express rail delays

The Transport and Logistics Bureau said it holds MTRCL accountable for the delays.

The government settled with the MTR Corporation Limited (MTRCL) on delays and cost overruns on the Hong Kong Section of the Guangzhou-Shenzhen-Hong Kong Express Rail Link (XRL) and the Shatin-to-Central Link (SCL).

MTRCL will pay the $2.25b for the XRL programme delay. On the SCL, both sides dropped delay claims against each other, whilst MTRCL absorbs about $2.8b in additional project management costs along with expenses from the Hung Hom Station Extension quality incident.

Construction of the XRL began in 2010, with an opening originally set for August 2015. A 2015 agreement moved the completion target to the third quarter of 2018 and raised the estimated Cost to Complete from  $65b to  $84.42.

Meanwhile, the SCL started construction in 2012 and was initially due for completion between 2018 and 2020.

The Tuen Ma Line fully opened in June 2021 and the Cross-harbour Extension in May 2022. Its estimated Cost to complete rose from  $79.82b to $90.73b.

The Transport and Logistics Bureau said the settlement holds MTRCL accountable for both delays.

Following independent legal and engineering advice, the government and MTRCL reviewed the projects and built enhanced mechanisms into ongoing railway works.