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Transcript of remarks by STH on Express Rail Link project
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     Following is the transcript of remarks by the Secretary for Transport and Housing, Professor Anthony Cheung Bing-leung, speaking to the media on the Guangzhou-Shenzhen-Hong Kong Express Rail Link project after attending radio programmes today (December 1):

Reporter: You are talking about taking legal action. Could you explain a bit more about what sort of legal action you are talking about, about arbitration? Now many lawmakers have described the deal as financial trickery. What do you have to say to that? Who's really paying for all these costs?

Secretary for Transport and Housing: Let me address your second question first. I suppose some commentators are referring to the proposal by the MTR Corporation Board to declare a special dividend and they see that as some kind of trick. I don't think any trick will do because at the end of the day, whatever the MTR Board recommends will have to be approved by the independent shareholders, meaning without Government as the majority shareholder. So independent shareholders have to take a view and I suppose they would only agree if they see the proposal from the Board is in the best interest, or the overall interest of the Corporation.

     As to your first question, the legal action that would take place eventually, because the Government, as I said, is not satisfied with the performance of the Corporation as project manager. Under the Entrustment Agreement that we signed with the MTR Corporation a few years ago, should there be any cost overrun, the Government will pay. That's of course on the assumption that the Corporation has made its best endeavours in securing the smooth implementation of the project. If we see that there are problems, there are inadequacies on the part of the Corporation as project manager, then we think we should ask for MTR Corporation to address its warranties and obligations and any resulting liabilities. That would take place in the form of legal action. At the moment we are envisaging pursuing arbitration. Both sides, in the interest of not upsetting the progress of the project works, have agreed that such legal action would only start, would only commence, when the Express Rail is commissioned in 2018.

(Please also refer to the Chinese portion of the transcript.)

Ends/Tuesday, December 1, 2015
Issued at HKT 10:41

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