Trouble still ahead on MTR's high-speed railway track

A budget overrun has been expected ever since the authorities confirmed that the completion target for the HK$65 billion Hong Kong section of the high-speed railway to Guangzhou would not be met. The question is how much more will it cost and, above all, who will foot the bill?

A review by independent experts suggest the answers are not as straightforward as they may seem. The MTR Corporation maintains it is "90 per cent confident" the project can be finished by 2017 and that the cost will be no more than HK$71.5 billion. But the experts are not as optimistic. Not only is there a 67 per cent chance of a further cost overrun, there is only a 69 per cent chance of avoiding further delay beyond 2017, according to their report, commissioned by the MTR Corp.

It is difficult for the public to judge which figures are more trustworthy. But the expert assessment provides little comfort for those whose confidence has been shaken. The fallout was, after all, partly due to the fact that individual executives were overconfident in their ability to adhere to the original timetable. We hope the rail operator has learned a lesson and can prove to the community that it is capable of delivering the project according to the revised budget and schedule.

The MTR Corp has already said that a request for extra funding will be submitted to the legislature for approval. If previous experience is any guide, it will be an uphill battle. The original funding was approved in 2010 only after hours of filibustering by members opposing the project. Given the political climate, this is an episode likely to be repeated.

Whether the extra cost should come from the public coffers will continue to be a subject of heated debate. What is important, though, is that further wrangling is likely to drive up costs and further delay the completion date. The government and the MTR Corp should be prepared for some tough selling as to why taxpayers should foot the bill. Those holding the key to funding should also put the city's best interests above politics. The earlier the railway is completed, the better.