The Transport & Logistics Bureau and the MTR Corporation have executed the Part 1 Project Agreement, subsequent to the approval of the financial arrangement for Part 1 of the Northern Link (NOL) Project by the Chief Executive in Council today.
 
Supported by an independent checking consultant, the Government critically examined the financial estimates provided by the corporation in relation to Part 1 of the NOL Project, and verified that the capital cost estimate is about $31.4 billion (in July prices).
 
Noting that the NOL Project embodies significant strategic value, the Government said that it has decided to make major breakthroughs to enhance the project’s speed and efficiency.
 
It explained that it would take forward the project through a holistic planning and staged implementation strategy, planning the NOL Spur Line in combination with the NOL Main Line as one project to achieve synergies and realise cost savings.
 
The project would be implemented under a two-part approach to expedite progress. The execution of the Part 1 Project Agreement at this juncture could propel the project forward immediately, and in parallel carry out the detailed planning and design as well as statutory procedures for the NOL Spur Line.
 
In the spirit of innovating continuously, the Government is pursuing various strategies for reducing cost and accelerating project delivery, which would be implemented as soon as possible.
 
Such strategies include leveraging Mainland approaches and capabilities in construction on account of the cross-boundary element of the project, and setting up a dedicated team in the Highways Department to handle building submissions in a manner to streamline the overall project workflow and expedite procedures.
 
These initiatives will not only improve the construction efficiency of the cross-boundary NOL Spur Line, but may also benefit the NOL Main Line to a certain extent, the Government said.
 
By adopting a result-oriented mindset, the construction efficiency will also be improved with railway-related Mainland standards, practices and resources, substantially bringing forward the planning of the NOL Spur Line.
 
The target is to commission the NOL Spur Line together with the NOL Main Line by 2034 or earlier, which is about two years earlier than what was originally envisaged, the Government added.
 
The Chief Executive in Council approved the grant of sites at Kam Sheung Road Station Phase 2; Fanling North Area 13 (East) and Area 16; Kwu Tung North Area 22 (East), Area 26 (West), Area 14 and Area 15; as well as San Tin Area 4D, Area 6A and Area 2A to the MTR Corporation for residential and commercial development under the "Rail-plus-Property" model.
 
A total fixed lump sum of $39.05 billion, in money-of-the-day prices, would be deducted from the full market value land premium of the sites assessed on a "with-railway" basis in the future as funding support to the corporation in implementing Part 1 of the NOL Project.
 
The execution of the Part 1 Project Agreement today would immediately kick-start works that are more ready and time-critical, including the civil and structural works of two sections of the NOL Main Line from the Kam Sheung Road Station to the intersection with the approach tunnels to Ngau Tam Mei Depot and from the San Tin Station to the Kwu Tung Station.
 
The MTR Corporation is required to carry out the detailed planning and design of the NOL Spur Line simultaneously, including statutory procedures relating to the environmental impact assessment and railway scheme gazettal, and strive for completion as early as possible.