Hong Kong's east rail extensions project approved

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 ◆ Hong Kong's east rail extensions project approved

The Executive Council of the Hong Kong Special Administrative Region (SAR) recently approved in principle the draft East Rail Extensions Project Agreement.

The agreement will be executed between the SAR government and the Kowloon-Canton Railway Corporation (KCRC) subject to any drafting changes which may be necessary before execution.

The draft Project Agreement sets out the respective rights and obligations of government and the KCRC in carrying out the East Rail Extensions in terms of their financing, design, construction and operation.

A government spokesman said the project agreement records the injection of government equity of 8 billion HK dollars (1.02 billion US dollars) into KCRC and the grants of property development rights at six sites, both of which were endorsed by the Executive
Council in June 1999 and subsequently by the Finance Committee in May 2000.

Of the extension project, the MOS Rail and TST Extension are now under construction and are expected to commence operation by the end of 2004. The construction of the Spur Line is scheduled for completion by mid-2007.