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Fri March 05 2021

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Hong Kong rail delay triggers $10bn in claims

29 May 14 Delays in starting Guangzhou-Shenzhen-Hong Kong Express Rail Link works projects have resulted in substantiated claims of about HK$10.756bn (£827m).

Secretary for transport & housing Professor Anthony Cheung said that the MTR Corporation is conducting detailed assessments and is discussing the claim contents and details with the contractors involved.

As at March 31, the corporation had received 611 substantiated claims. "For substantiated claims, the reasons of claims mainly involve unforeseeable ground conditions, coordination and changes in design, inclement weather and other external factors," he said.

He said 137 cases were resolved, with about HK$1.393bn awarded in total. Among the 474 cases yet to be resolved, taking into account the needs of individual works and assessment and negotiation progress, interim awards of about $925 million were made.

The corporation will continue to handle remaining cases cautiously, he added.

The government is carrying out an investigation into the delay to the project, which is set to put back the line's opening by nearly a year (link opens in new tab).

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