Exco greenlit part one of the project in July last year.
This means that the main line and the spur line – expected to be commissioned simultaneously by 2034 – have fully entered the construction stage.
The cost is estimated to be about HK$54.8 billion for part two of the project, while the entire project is estimated to cost about HK$86.2 billion – 28 percent lower than the initial forecast, due to the shortened construction period and cost-saving benefits.
Exco agreed to grant a total of eight sites located in Ngau Tam Mei Area, San Tin Area, Kwu Tung North Area and the proposed Au Tau New Development Area to the railway operator for residential and commercial development.
A fixed lump sum will be deducted from the land premium of the sites to help fund the MTR in carrying out part two of the project.
The railway operator, for its part, said the estimated capital cost for the Northern Link is the most expensive one among its works.
It emphasised that it had been financially sound in recent years, and that it increased cash flow by issuing bonds.
The MTR said it does not rule out the possibility of raising capital through ways other than bond issuance.
