MTR Corp pays out HK$2.25 billion for high-speed rail construction delays

The MTR Corporation will hand over HK$2.25 billion (US$287 million) to the Hong Kong government as a one-off settlement for the delayed completion of the high-speed rail line, while reaching a consensus to avoid a payout over hurdles affecting the Sha Tin to Central Link.

While the transport firm oversaw the design, construction, testing, and operation of the two projects, both are owned by the government and involved public funds.

Under the arrangements announced on Friday, the MTR Corp will pay the government, its majority shareholder, HK$2.25 billion for the delay to the commencement of the 26km (16.1-mile) local section of the cross-border High Speed Rail, which was completed in 2018.

But the MTR Corp and authorities also agreed not to pursue further claims over the Sha Tin to Central Link, as the rail firm had shouldered extra costs of HK$2.8 billion to address quality issues and delays.