The HK$84.42bn (£7.2bn) project has been hit by delays and cost increases (link opens in new tab).
Hong Kong will face serious consequences if the Legislative Council does not approve additional funding, secretary for transport and housing Professor Anthony Cheung said yesterday.
He said a decision must be made by the end of February on whether to temporarily suspend the Hong Kong section of the project. He added that the decision had to be made by the end July, when an existing HK$65bn entrustment fee given to the MTR Corporation will be exhausted.
"By the end of February, that is roughly the time we need to consider the question. I am not saying that by the end of February we have to stop works,” he said. “I am saying that we have to start thinking, and the time window is rather narrow by that time."
The first step would be a temporary suspension, said Cheung, but after a six-month temporary suspension the contractors could walk out because the contracts would be be deemed terminated. The government would have to restart the tendering process if it wants to restart the works. Cheung said, adding that new contractors may have views about existing works and more time would be needed to review project design and to sort out all kinds of issues.
"Any termination of contract will lead to more expenses and longer time to complete the project," he said.
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