Hong Kong approves financial estimates for rail line extension

Construction is expected to start mid-2023.

The Hong Kong Government has approved the financial estimates for the Tung Chung Line Extension (TUE) by the MTR Corporation (MTRC) after the estimates received backing from an independent checking consultant.

The MTRC has been appointed by the Transport & Logistics Bureau to be responsible for the TUE’s financing, design, construction, operation, and maintenance.

MTRC presented the government with a capital cost estimate for the TUE to be at $19.5b, in December 2020 prices, with a funding gap of $15.5b (July 2022 Net Present Value). 

“Under the relevant financial arrangement, the MTRC is required to pay a land premium, which is the full market value assessed on a 'with-railway' basis less the fixed lump sum, for the development of the site. The MTRC will also bear all the associated commercial risks arising from market fluctuations and rail operations,” the city government said, adding that they will continue providing financial support to the MTRC to implement the project.

The TUE will offer direct railway access to the Tung Chung New Town Extension supporting the sustainable growth in population and employment opportunities in that area. There is an additional planned population of about 146,000 and 38,000 in Tung Chung East and Tung Chung West, respectively.