Construction costs of a new HK-Shenzhen border control point have escalated by a staggering 52 percent to HK$24.8 billion

December 31, 2013 Leave a comment

Crossing costs soar
Eddie Luk
Tuesday, December 31, 2013
Construction costs of a new border control point have escalated by a staggering 52 percent to HK$24.8 billion. The government is seeking Legislative Council approval for an extra HK$8.55 billion – from an original cost estimate of HK$16.2 billion – for the new Liantang-Heung Yuen Wai crossing between Hong Kong and Shenzhen.The Development Bureau said poor ground condition, rising wages and heavy engineering works have combined to balloon the cost.

The increase in funding will be sufficient to build the new crossing, between the Man Kam To and Sha Tau Kok crossings in northeastern Hong Kong, which is planned for operation in 2018.

In a paper submitted to the Legislative Council development panel yesterday, the bureau disclosed that major factors were rising wages of construction workers and the rising cost of heavy engineering, electrical and mechanical works – which altogether need an additional HK$3.97 billion.

The ground conditions for building the 4.8-kilometer Lung Shan Tunnel between the interchanges at Fan Ling Highway and Sha Tau Kok Road were poorer than thought, leading to additional costs of HK$1.085 billion.

The bureau said faults were found to be straddling a 1.4km stretch of tunnel, calling for more extensive temporary works to strengthen the tunnel.

The provision for price adjustment and contingencies funding has also increased by HK$3.49 billion. The bureau will apply for additional funds from the Finance Committee in February.

Democratic Pa

rty lawmaker James To Kun-sun criticized the government for underestimating the cost.

And Gary Fan Kwok-wai said he will oppose the funding request.

Democratic Alliance for the Betterment and Progress of Hong Kong lawmaker Ip Kwok-him said the party will see if the funding increase is reasonable.

The Federation of Trade Unions’ Wong Kwok-hing said the project has to go ahead.

Engineering-sector lawmaker Lo Wai-kwok, who is also chairman of the Legco public works subcommittee, said: “It is understandable for the government to apply for more funding to carry out the project since the matter of the ground condition [for building the tunnel] is complicated.”

The new crossing will handle more traffic and passenger trips than the existing Man Kam To crossing point.

It is estimated that in 2030, the Liantang-Heung Yuen Wai border crossing will see about 20,600 vehicle trips and 30,700 passenger trips a day.

Upon completion in 2018, the Lung Shan Tunnel will be the longest land road tunnel in Hong Kong.

The new border crossing will be connected to the Eastern Corridor in Shenzhen to provide better access to the eastern part of Shenzhen.

Filed under Macro Trends

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