The Chief Executive-in-Council today approved the implementation of the Hong Kong section of the Guangdong-Shenzhen-Hong Kong Express Rail Link project and a special compensation package for residents whose land is to be resumed.

Secretary for Transport & Housing Eva Cheng told reporters today the rail construction will create 11,000 job opportunities during the peak period. When completed, the high-speed rail system and related business establishments will hire 10,000 people.

Due to a global price-hike trend and improvements to the railway scheme, the cost of the rail works has also been adjusted to $53.7 billion. The cost estimate for the non-railway works is $11.5 billion.

Ms Cheng said the need to provide an emergency rescue station and stabling sidings to meet operational requirements meant the Government must resume 27 hectares of land at Choi Yuen Tsuen in Shek Kong, affecting 150 households.

The package proposed for the villagers and other parties affected by land resumption and clearance of various sites required will exceed present compensation and rehousing arrangements under the existing policy.

Tailored package

She urged the residents to carefully consider the special package which has been devised to allow them to make the best choice according to their individual circumstances, stressing "it is a very special package only tailored for Choi Yuen Tsuen."

Eligible households with special rehousing needs will be offered an ex-gratia cash allowance of $600,000, or an allowance of $500,000 and an opportunity to buy a New Territories flat under the Home Ownership Scheme without being subject to the comprehensive means test. All affected households will be given a domestic removal allowance ranging from $3,000 to $10,000.

Genuine farmers can buy or rent land to continue with farming activities and apply to the Agriculture, Fisheries & Conversation Department and the Lands Department for a short-term waiver on such land to build a 17 foot-high temporary structure of an area of 400 square feet for residential purposes. Those eligible can also choose to apply for an ex-gratia cash allowance of up to $600,000.

Compensation bolstered

The ex-gratia compensation for Choi Yuen Tsuen will also be upgraded. The compensation rate for its building land will be raised from $433.75 to $1,041 per square foot, and for agricultural land from $219.5 to $526.8 per square foot.

About two hectares of land near the village can be recovered after a shallow section of the rail tunnel is built. The lot will be leased to a non-governmental organisation at nominal rent for operating a non-profit making community farm in the future to meet the villagers' aspiration to continue their way of living.

The secretary has also been authorised to exercise discretion and determine whether an ineligible household with special rehousing needs can be entitled to special assistance.

Flexibility of choice

Ms Cheng said the Government has noted the residents' demand and the exclusive compensation package has provided flexibility of choice.

"The project is an essential project of strategic importance to us and the future integration of Hong Kong in the nation's development through our connectivity with the national high-speed railway system," she said.

The Government will seek funding approval from the Legislative Council Finance Committee so the project's construction can start by the end of the year.