MTR Corp is confident it will obtain state approval for the much-delayed subway project in Shenzhen, despite uncertainty over funding arrangements for the 6 billion yuan (HK$6.75 billion) investment.
Chairman Raymond Chien Kuo-fung, speaking after the railway operator's annual shareholder meeting yesterday, said it was only a matter of time before the railway was built.
Analysts say the project has been derailed by the special economic zone's tightened policy on housing and land supply.
Shenzhen's ongoing attempt to cool the city's property boom has resulted in MTR no longer getting the government's land grant to develop and market property to fund the construction of the 15.8km Metro Line 4, running between Shaoniangong in the south to Qinghu in the north, estimated at 6 billion yuan.
As discussions on new funding continued, an agreement was reached with the Shenzhen municipal government over reimbursing MTR on the preparatory costs for the subway line, Mr Chien said.
'We are still pursuing the project, which is an important piece of infrastructure in Shenzhen,' he said. 'We are now fighting for a resolution from the [National Development and Reform Commission].'