MTR entered into agreements with Hong Kong’s secretary for transport and housing for the financing, design, construction and operation of the lines. The company will bear and finance the SIL(E) and KTE construction costs.
Property development is a significant part of MTR’s business, providing income to supplement the return on railway projects as well as providing new catchment areas for the rail services. Proposed property developments are intended to contribute to the financial return of both projects. The SIL(E) covers approximately 7.17 hectares and proposed uses are residential, commercial, station, depot and public transport interchange. Residential and station uses are proposed at the KTE site.
MTR’s estimate of the KTE capital cost is approximately HK$5,346m (£424m) and HK$12,429m (£987m) for SIL(E), both based on December 2009 prices.
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