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The Government noted that the MTR Corporation Limited (MTRCL) Independent Board Committee (IBC), established to review the revised schedule for the commissioning of the Hong Kong Section of the Guangzhou-Shenzhen-Hong Kong Express Rail Link (XRL), published its second report today (October 28). The report comprises the IBC's findings and conclusions in relation to various matters, reviewed by its two independent experts, on the MTRCL's XRL project management; as well as the IBC's recommendations for consideration by the MTRCL Board.
The Government noted that the independent experts as well as the MTRCL's Project Team for the XRL and the Procurement and Contracts Department (Procurement) have different views on the MTRCL's revised Programme to Complete (PTC) and the latest Cost to Complete (CTC).
A Government spokesman said that the MTRCL provided the Government in May this year with preliminary information of its revised PTC for commissioning of the Hong Kong Section of the XRL by the end of October 2017. Thereafter, the Highways Department (HyD) and its monitoring and verification (M&V) consultant requested the MTRCL to provide more detailed information for further examination. The HyD, with the assistance of its M&V consultant, has completed its review on the MTRCL's proposed revised PTC based on the information provided by the MTRCL. The HyD considers that the revised PTC could be attained provided that the target progress is met for the critical contracts and various major conditions are satisfied. The HyD notified the MTRCL of its assessment in writing on October 23.
In respect of the project cost, the Government received a letter from the MTRCL on July 24 this year, informing the Government that the Corporation's latest estimate of the CTC for the XRL Hong Kong Section is $71.52 billion (including the Project Management Cost). The HyD and its M&V consultant are reviewing in detail the latest CTC and have requested the MTRCL to provide further information. Further assessment by the HyD and its M&V consultant will have to be conducted upon receipt of all information from the MTRCL. The Government will report to the Legislative Council and the public upon completion of the review. As regards the overrun of approved project estimate and the parties' responsibility for bearing the relevant costs, the Government will act in accordance with the Entrustment Agreement and reserve all the rights to pursue the warranties and obligations from the MTRCL.
The spokesman stated that the MTRCL is expected to propose early to the Government a comprehensive and practicable solution after taking into full consideration the report prepared by the IBC's independent experts and the issues raised by the HyD, with a view to completing and commissioning the XRL Hong Kong Section according to the revised PTC and the latest CTC. At the same time, the Government expects that the MTRCL will conduct a better risk management in project management and monitoring, as well as budget control.
Ends/Tuesday, October 28, 2014
Issued at HKT 21:51
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