A new arrangement for building a major rail link in Hong Kong’s Northern Metropolis mega development can reduce costs by up to 40 per cent through leveraging mainland China’s lower wages and construction standards, lawmakers have said.
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Speaking to the Post on Wednesday, legislator Michael Tien Puk-sun said the financing agreement announced the previous day would satisfy the demand of Xia Baolong, Beijing’s top man on local affairs, to accelerate the development of the metropolis near the border with the mainland.
The agreement between the government and the MTR Corporation will bolster financing for the Northern Link by granting the rail giant 10 development sites and deducting HK$39.05 billion (US$4.97 billion) from it land premiums. It also opens the door for the company to work with mainland partners.
“Originally, if we use Hong Kong construction standards for the entire Northern Link, the spur line will cost HK$40 billion and the main line will cost HK$60 billion,” Tien, former chairman of the Kowloon-Canton Railway Corporation, said.
“We are now building half of the HK$60 billion main line, which would cost us HK$30 billion. The remaining half of the main line and the spur line would cost us HK$70 billion to build.”
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Tien said he believed that authorities could reduce costs by 20 per cent from the HK$70 billion if they opted to use mainland construction standards, with a further 20 per cent savings achievable if they adopted cross-border wage practices.