Director of Highways Mak Chai Kwong today signed a $608 million contract with Gammon Skanska to start improvement work on Castle Peak Road between Ka Loon Tsuen and Siu Lam.

Work will start this month for completion in mid-2007.

The work is part of the Government's plan to improve the traffic capacity of Castle Peak Road to cope with the demand from population growth in the Northwest New Territories. 

The improved Castle Peak Road will also act as a relief route for Tuen Mun Road.

The contract includes:

* widening a 1.1-kilometre section of Castle Peak Road between Ka Loon Tsuen and Tai Lam Kok from a single three-lane road to a dual two-lane road with a three-metre wide footpath on both sides;

* constructing a one-kilometre section of new Castle Peak Road between Tai Lam Kok and Siu Lam, including an 800-metre long dual two-lane viaduct;

* reconstruction of a 1.2-kilometre section of Castle Peak Road between Tai Lam Kok and Siu Lam; and

* associated landscaping works.