Kwok Ka-ki
The government warned on Friday that it will have to fork out some HK$5 billion in compensation just for suspending the construction of the delayed and over-budget express rail link to Guangzhou, and even more for a complete termination.
Transport Secretary Anthony Cheung reiterated that there would be serious consequences if the construction was halted, in case lawmakers and MTR shareholders refuse to back a new deal on the project.
The agreement between the MTR Corporation and the government announced earlier this week involves the legislature approving HK$19.6 billion extra funding, and for minority shareholders of the MTR to endorse giving a special dividend of roughly the same amount to the government.
“If the XRL project was to fall apart, we would need extra funding to terminate the project and we would also need to compensate contractors,
“This amount to billions of dollars and that has not even included indirect losses,” Cheung told the Legislative Council’s railway subcommittee.
But some lawmakers accused the minister of “blackmailing” them.
“[Officials] come back to ask people of Hong Kong to give more but are not taking the responsibility, not apologising and only saying that you need to give us the money. What is the attitude of this government? I think it’s totally hopeless,” Civic Party legislator Kwok Ka-ki said.
The cost of the controversial project is now ballooned to HK$84.4 billion – about 30 percent more than what the legislature had approved nearly six years ago. It is expected to be completed in the third quarter of 2018, instead of last summer.
Transport Secretary Anthony Cheung reiterated that there would be serious consequences if the construction was halted, in case lawmakers and MTR shareholders refuse to back a new deal on the project.
The agreement between the MTR Corporation and the government announced earlier this week involves the legislature approving HK$19.6 billion extra funding, and for minority shareholders of the MTR to endorse giving a special dividend of roughly the same amount to the government.
“If the XRL project was to fall apart, we would need extra funding to terminate the project and we would also need to compensate contractors,
“This amount to billions of dollars and that has not even included indirect losses,” Cheung told the Legislative Council’s railway subcommittee.
But some lawmakers accused the minister of “blackmailing” them.
“[Officials] come back to ask people of Hong Kong to give more but are not taking the responsibility, not apologising and only saying that you need to give us the money. What is the attitude of this government? I think it’s totally hopeless,” Civic Party legislator Kwok Ka-ki said.
The cost of the controversial project is now ballooned to HK$84.4 billion – about 30 percent more than what the legislature had approved nearly six years ago. It is expected to be completed in the third quarter of 2018, instead of last summer.
http://news.rthk.hk/rthk/en/component/k2/1227628-20151204.htm
