The MTR Corporation (0066) issued an announcement stating that it has signed a project agreement with the government on the financing arrangement for the extension of the Tung Chung Line, and announced the cost of the extension of the Tung Chung Line and the cost of the extension of the Tung Chung Line Tunnel. The two involved a total of 245 It also pointed out that the proposed development land of the Tung Chung Line Extension is about 7.61 hectares, and the MTR Corporation will be allowed to carry out commercial and residential property development projects on the relevant development land, so as to increase the financial return of the line extension project and enable the company to obtain considerable business rate of return.
The station project of Tung Chung East-West Station started in May this year
In the announcement, MTR expects to start the construction of two new stations, Tung Chung East Station and Tung Chung West Station, and related railway projects in May this year. It is expected to be completed in December 2029. The airport U-turn tunnel extension project is targeted for 2032 be operational before the end of the year.
MTR pointed out that today (28th) it signed a project agreement with the government on the financing arrangement, design, construction, completion, pre-operation preparation work, operation and maintenance of the Tung Chung Line Extension.
The company will own, operate and maintain the Tung Chung Line Extension and related services and facilities during the franchise period.
The company pointed out that the cost of the extension of the Tung Chung Line is 19.5 billion yuan, and the cost of the extension project of the airport-rail U-turn tunnel is 5 billion yuan.
In addition to paying the full cost of the relevant project by itself, it is also necessary to bear all the land acquisition costs arising from the Tung Chung Line Extension Project, and it is expected that the above-mentioned construction cost will be incurred in the next 10 years through the financial contribution of the proposed property development project, and Funding from internal resources.
The proposed development of the extension line is about 7.61 hectares
The MTR pointed out that the proposed development site of the Tung Chung Line Extension is about 7.61 hectares, which is planned to be used for residential, commercial, railway facilities and public transport interchanges, and pointed out that commercial and residential property development projects can be carried out on the relevant development site.
As for the land price arrangement for the land use, the MTR pointed out that the operation agreement stipulates that the company will assume the property development rights of the new project, and the government agrees that as long as the current land policy continues to be maintained, the land price payable by the company will be based on the fact that the land being appraised is located along the railway line It also pointed out that the two parties have agreed on a revised arrangement, which is reflected in the Tung Chung Line Extension Project Agreement.
The total value of the land premium payable by the company for the proposed development land of the entire Tung Chung Line extension will be assessed by the government. The evaluation basis is the market value of the development land after taking into account the existence of the railway minus the downward adjustment amount of 18.3645 billion yuan.
The MTR pointed out that the proposed development site of the Tung Chung Line Extension will be developed in phases, and the evaluation of the land price of each phase will be carried out on the basis of the above-mentioned basis when the relevant tender is conducted, and the reduced amount for a specific number of phases will be reduced.
The company pointed out that the signing of the project agreement can expand the railway network through the implementation of the Tung Chung Line Extension Project, and maintain the railway plus property model through property development projects, increasing the return on the Tung Chung Line Extension, so that the extension project can achieve a considerable rate of return.
The Tung Chung Line Extension is expected to be completed in 6 years. Next year, 30,000 people will move into land reclamation. Zhang Xinyu advocates strengthening the shuttle buses
