Road costs lopped off bill for Guangzhou link

The government has managed to claw back its projected bill for the planned express rail link to Guangzhou to under HK$60 billion - by excluding the cost of building connecting road networks from the estimate.

The revised estimate is expected to be submitted to the Executive Council tomorrow.

The cost of building the Hong Kong section of the high-speed railway has ballooned beyond the original estimate of HK$39.5 billion - which included the roadworks. And an official familiar with the project said that estimates several months ago had exceeded HK$60 billion.

The cost is soaring because most of the 26-kilometre Hong Kong section will have to be built underground - it will run through twin tunnels and through three hills - and the price of materials keeps rising.

The official familiar with the project said the cost of the rail link would be trimmed to below HK$60 billion after the government excluded the cost of building the road networks connecting to the terminus in West Kowloon from the final estimate.

He said deducting the cost of the roadworks from the estimate was sensible, since roads would have to be built anyway to the terminus and the West Kowloon Cultural District. The cost of the roads is estimated to be several billion dollars.

The final estimate for the project includes a revised compensation package for affected villagers in Choi Yuen Tsuen in Yuen Long.