MTR to pay $2.25b for railway delays in Hong Kong

The Hong Kong government has reached a settlement with the MTR Corporation regarding significant delays and cost overruns on two major railway projects: the Guangzhou-Shenzhen-Hong Kong Express Rail Link (XRL) and the Shatin-to-Central Link (SCL).

Under the agreement, MTRCL will pay $2.25 billion for delays associated with the XRL programme. Regarding the SCL, both parties have agreed to drop mutual delay claims. However, MTRCL will absorb approximately $2.8 billion in additional project management costs and expenses stemming from quality incidents at the Hung Hom Station Extension.

The XRL project, which began construction in 2010, saw its estimated cost rise from $65 billion to $84.42 billion following a 2015 agreement that rescheduled its completion. Similarly, the SCL saw its estimated completion costs increase from $79.82 billion to $90.73 billion. The Transport and Logistics Bureau stated that the settlement holds the corporation accountable for the delays and that enhanced mechanisms have been integrated into ongoing railway works.