MTRC (HKG:0066) announced that the company entered into an entrustment agreement with the Hong Kong Government for construction and commissioning of the Shatin to Central Link (SCL).

The entrustment agreement took effect from 29 May 2012. The maximum aggregate amount payable by Government to the company for the entrustment cost under the entrustment agreement is limited to HK$3 billion per annum and a total in aggregate of HK$15 billion. The maximum aggregate amount payable by the company to the Government in relation to its contribution to the railway works under the entrustment agreement is limited to HK$4 billion per annum and a total in aggregate of HK$15 billion.

Jay Walder, the chief executive officer of MTR Corporation, said that construction works will commence immediately and they are committed to maintaining close communication with the local public to minimize the construction impacts on the local communities.

The 17-km SCL consists of 10 stations, 6 of which are interchange stations, namely Tai Wai, Diamond Hill, Ho Man Tin, Hung Hom, Exhibition and Admiralty. It is expected to be completed in 2 phases, with the section between Tai Wai and Hung Hom being completed in 2018 and the Hung Hom to Admiralty Section in 2020. The project is expected to create about 15,000 jobs throughout the construction period.

Source:chinesestock.org