MTR Corp pays out HK$2.25 billion for high-speed rail construction delays

MTR Corporation has agreed to pay Hong Kong's government HK$2.25 billion (US$287 million) as a one-off settlement for delays in the construction of its high-speed rail line, according to a recent announcement. The settlement comes after both parties reached a consensus to avoid further claims related to the Sha Tin to Central Link project, which is also owned by the government and funded through public funds.

The 26km (16.1-mile) local section of the cross-border High Speed Rail, completed in 2018, experienced delays and faced additional costs due to quality issues and construction hiccups. MTR Corporation, as the project manager, was responsible for ensuring the timely completion of the projects. However, the company has acknowledged the significant challenges faced during the construction process and has vowed to learn from these experiences.

MTR Corp CEO Jeny Yeung Mei-chun emphasized that the corporation has reviewed and implemented rigorous mechanisms to strengthen railway project governance, supervision, and cost control. The Transport and Logistics Bureau commended the government for its serious, rigorous, and professional follow-up on the MTR Corp's responsibilities as the project manager.

Both parties have learned from the delays and are taking steps to ensure a safer and more efficient railway system for Hong Kong's future development and long-term sustainable growth.