Chief Executive in Council approves financial arrangement for Part 1 of Northern Link Project (with photo)
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The NOL Project is a key transport infrastructure in support of the future development of Hong Kong. The NOL Main Line would become the public transportation backbone for multiple new development areas in the Northern Metropolis, providing efficient and reliable railway services to meet the transport demand from new population along the railway alignment. The NOL Spur Line, which is being taken forward together with Shenzhen through the Task Force for Hong Kong-Shenzhen Co-operation on Cross-Boundary Railway Infrastructure, would be a cross-boundary bifurcation of the NOL linking the metro networks of Hong Kong and Shenzhen, connecting to the new Huanggang Port through convenient co-location clearance arrangements and facilitating Hong Kong's better integration into the national development.
To expedite the implementation of the NOL Project, the Government already required the MTRCL to reserve relevant budget to undertake the detailed planning and design as well as part of the advance works for the NOL Main Line when executing the PA of the Kwu Tung Station with the MTRCL earlier. The relevant detailed planning and design including statutory procedures have been substantially completed and the advance works have also commenced.
A Government spokesman said, "The NOL Project embodies significant strategic value. With a strong determination to break new ground, the Government has resolutely decided to make three major breakthroughs to enhance the speed and efficiency of the project.
"Firstly, we would take forward the NOL Project through a holistic planning and staged implementation strategy, planning the NOL Spur Line in combination with the NOL Main Line as one project to achieve synergies and realise cost savings. The project would be implemented under a two-part approach to expedite progress. The execution of Part 1 PA at this juncture could propel the project forward immediately, and in parallel carry out the detailed planning and design as well as statutory procedures for the NOL Spur Line.
"Secondly, in the spirit of innovating continuously, we are pursuing various strategies for reducing cost and accelerating project delivery, which would be implemented as soon as ready. Such strategies include leveraging Mainland approaches and capabilities in construction on account of the cross-boundary element of the project, and setting up a dedicated team in the Highways Department to handle building submissions in a manner which streamlines the overall project workflow and expedites procedures. These initiatives will not only improve the construction efficiency of the cross-boundary NOL Spur Line, but may also benefit the NOL Main Line to a certain extent.
"Thirdly, adopting a result-oriented mindset, we would improve the construction efficiency through adopting railway-related Mainland standards, practices and resources, substantially bringing forward the planning of the NOL Spur Line. The target is to commission the NOL Spur Line together with the NOL Main Line by 2034 or earlier, which is about two years earlier than what was originally envisaged."
The Government, supported by an independent checking consultant, has critically examined the financial estimates provided by the MTRCL in relation to Part 1 of the NOL Project, and verified that the capital cost estimate is about $31.4 billion (in July 2025 prices).
The Chief Executive in Council approved the grant of sites at Kam Sheung Road Station Phase 2; Fanling North Area 13 (East) and Area 16; Kwu Tung North Area 22 (East), Area 26 (West), Area 14 and Area 15; as well as San Tin Area 4D, Area 6A and Area 2A to the MTRCL for residential and commercial development under the "Rail-plus-Property" model. A total fixed lump sum of $39.05 billion (in money-of-the-day prices) would be deducted from the full market value land premium of the sites assessed on a "with-railway" basis in the future as funding support to the MTRCL in implementing Part 1 of the NOL Project.
The execution of the Part 1 PA between the Government and the MTRCL today would immediately kick-start works that are more ready and time-critical, including the civil and structural works of two sections of the NOL Main Line from the Kam Sheung Road Station to the intersection with the approach tunnels to Ngau Tam Mei Depot and from the San Tin Station to the Kwu Tung Station. The MTRCL is required to carry out the detailed planning and design of the NOL Spur Line simultaneously, including statutory procedures relating to the environmental impact assessment and railway scheme gazettal, and strive for completion as early as possible. The Part 2 PA would be executed to finalise the arrangements for the remaining works and operation as soon as possible after completion of the relevant statutory procedures.
Ends/Tuesday, July 8, 2025
Issued at HKT 19:08
Issued at HKT 19:08
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