The Chief Executive-in-Council today approved the financial arrangements for the Kwu Tung Station (KTU) and Tuen Mun South Extension (TME) projects.

Subsequently, the Transport & Logistics Bureau has signed relevant project agreements with the MTR Corporation (MTRC). Construction of the KTU and TME projects is expected to be completed by 2027 and 2030 respectively.

The Government said both projects are implemented under the ownership approach and the MTRC will be responsible for their financing, design, construction, operation and maintenance.

Supported by an independent checking consultant, the Government has checked and verified the project financial estimates provided by the MTRC.

The Government said the capital cost estimate for the KTU project is about $9.8 billion, which includes the capital cost of about $5.9 billion for the KTU and the estimated costs of about $3.9 billion for the Northern Link Main Line’s detailed planning and design as well as some advance works. The capital cost estimate for the TME project is about $15.8 billion.

Apart from pointing out that these estimates are made in July 2023 prices, the Government also made it clear that it will provide funding support to the MTRC in order to implement the two projects.

The Executive Council approved granting the MTRC the property development rights of Kwu Tung North Areas 20, 22 and 25 adjoining the KTU, with an area of about 4.7 hectares, for high and medium residential developments, and deducting a total fixed lump sum of $15.16039 billion in money-of-the-day prices from the full market value land premium of the sites assessed on a "with-railway" basis in the future as funding support to the MTRC to implement the KTU project as well as the Northern Link Main Line’s detailed planning and design, and some advance works.

As for the TME project, the Executive Council approved granting the MTRC the property development rights of Tuen Mun Area 16 with an area of about 6 hectares, for integrated development for commercial and residential uses, and deducting a total fixed lump sum of $24.2138 billion in money-of-the-day prices from the full market value land premium of the site assessed on a "with-railway" basis in the future as funding support to the MTRC to implement the project.

The Government noted it has been advocating the “infrastructure-led” and “capacity-creating” planning principles in taking forward transport infrastructure projects.

It went on to explain that as the Northern Link’s Phase 1, the KTU is an intermediate station between the Lok Ma Chau Spur Line’s Sheung Shui Station and Lok Ma Chau Station, and will connect to the Northern Link Main Line. The KTU will serve the Kwu Tung North New Development Area’s transport needs and significantly reduce the travelling time between the area and Sheung Shui as well as support the continued growth in population and employment opportunities there.

Regarding the TME project, the Government said it will extend the Tuen Ma Line from Tuen Mun Station southwards by about 2.4km and provide two new stations, namely the Tuen Mun South Station near Tuen Mun Ferry Pier and an intermediate station at Tuen Mun Area 16.

Not only will the project improve railway access to the community south of the current Tuen Mun town centre and connectivity to Tuen Mun Ferry Pier, but also help relieve the existing roads’ congestion, thus bringing significant transport benefits by reducing the travelling time for the residents in the area, the Government added.