MTR Corp pays out HK$2.25 billion for high-speed rail construction delays
The MTR Corporation will hand over HK$2.25 billion (US$287 million) to the Hong Kong government as a one-off settlement for the delayed completion of the high-speed rail line, while reaching a consensus to avoid a payout over hurdles affecting the Sha Tin to Central Link. While the transport firm oversaw the design, construction, testing, and operation of the two projects, both are owned by the…
The MTR Corporation has agreed to pay the Hong Kong government HK$2.25 billion (approximately US$287 million) to settle financial issues arising from delays in the construction of high-speed rail lines. The payment, a one-time settlement, pertains to the delayed start of the 26km local section of the cross-border High Speed Rail, which was finalized in 2018.
The corporation and authorities also reached an agreement not to pursue additional claims over the Sha Tin to Central Link project, as the MTR Corp had incurred HK$2.8 billion in additional costs due to quality issues and delays in this project, which was completed in 2022. The Transport and Logistics Bureau stated that the government has been closely monitoring the MTR Corp's responsibilities as the project manager to protect the legitimate interests of the government and the public.
Both parties have acknowledged the lessons learned from the delays and have implemented measures to enhance railway project governance, supervision, and cost control. MTR Corp CEO Jeny Yeung Mei-chun acknowledged the significant challenges faced during the construction process and affirmed that the company would continue to deliver essential railway infrastructure for Hong Kong's future development and support the city's sustainable growth.
Written by urgent.news from South China Morning Post - Hong Kong's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
