China has learnt Lessons........,

China has learnt Lessons from High-speed Rail project: Cheung

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Secretary for Transport and Housing Anthony Cheung Bing-leung

Chinese Secretary for Transport and Housing Anthony Cheung Bing-leung said on Monday the government had learnt a lesson in adopting the concession approach to fund the Express Rail Link and entrusting the MTR Corporation (MTRC) with the project’s design and construction.

Cheung was speaking about the project before a Legislative Council committee investigating cost overruns and delays of the high-speed railway. The transport chief said the government had placed too much trust in the railway company, giving it “the benefit of the doubt” despite concerns over delays.

The 26-kilometer high-speed link was originally expected to be finished by the end of this year. But it was delayed until the third quarter of 2018. It is facing budget overruns of 30 percent – up to a total of HK$85.3 billion.

To avoid further delays, the government has applied for additional funding of HK$19.4 billion from the LegCo Finance Committee. A total of HK$33 billion will be needed to restart the project if the funding is not approved by February. Abandoning the unfinished link will cost the taxpayer HK$75.6 billion, including the HK$65 billion already allocated.

According to the service concession agreement, the MTRC will be in-charge of operation of the link upon completion of its construction. It will pay annual concession payments to the government.

Cheung said the government would actively consider allowing lawmakers to access the agreement – a long-awaited move demanded by the legislature since news of the delay first broke.

Asked whether the delay was caused by human factors or mechanical problems, the transport chief said both elements played a part.

A media report in May, 2013 discussed the possibility of delays resulting from a flawed design of the West Kowloon Terminus. But Cheung said he was only formally notified about the risk in November, 2013.

Despite growing concerns and speculation, the MTRC stood firm on its estimation of finishing the link on time until May 2014, when it admitted to delays.

In hindsight, Cheung said, the government should have told LegCo about conflicting views between the government and the MTRC on when the link would be completed. This would have avoided unnecessary speculation and doubts among the public.

China Railway 20 Bureau Group prioritizes overseas push

China Railway 20 Bureau Group Corp, the State-owned construction giant, is actively seeking opportunities along the Belt and Road Initiative routes, to raise the overseas share of its business to a third within five years.

Li Lingxuan, deputy general manager of the Shaanxi-based company, said it has already made strong progress on landing potential road and coal-mining projects in Pakistan, and is preparing tender documents for a housing project in Thailand.

The company is also participating in an ongoing light rail project in India, and a city planning project in Mongolia.