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THB's response to media enquiries on Shatin to Central Link
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     In response to media enquiries on the latest cost estimate of the Shatin to Central Link advance works, the Transport and Housing Bureau gave the following response today (August 13):

     The Shatin to Central Link (SCL) is a territory-wide strategic railway project, which is funded by the Government under the "concession approach". The SCL will have 10 stations, among which Admiralty Station and Ho Man Tin Station will become interchange stations serving passengers for the SCL and the South Island Line (East) (SIL(E)) and the SCL and the Kwun Tong Line Extension (KTE) respectively.

     To enable the implementation of the SCL project, the Government entered into an Entrustment Agreement with the MTR Corporation Limited (MTRCL) on May 17, 2011, for implementing the advance works of the SCL, including the expansion of Admiralty Station and construction of Ho Man Tin Station under the SIL(E) and KTE projects respectively. The cost estimate of the advance works was $7.35 billion.

     In a letter dated August 12 this year, the MTRCL notified the Highways Department that the latest cost estimate of the SCL advance works will be raised by $1.274 billion.

     Although we understand that major infrastructure projects may face different kinds of challenges or unforeseen difficulties during their construction, the Government is of the view that the MTRCL, being the entrusted project manager of the SCL advance works, bears the greatest responsibility and duty to control project cost and manage risks. It has to fulfil its role in supervising and co-ordinating its contractors, spare no efforts in completing the project as scheduled and notify the Government about the latest cost estimate in a timely manner.

     We have serious concern about the substantial adjustment on the cost estimate of the SCL advance works by the MTRCL. The Highways Department will request the MTRCL to submit further information and will critically examine the latest cost estimate with the assistance of its monitoring and verification consultant. Once we have the result, we will update the public in a timely manner.

Ends/Thursday, August 13, 2015
Issued at HKT 19:44

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