1 Infrastructure project work set to be moved forward
Gary Cheung, Daniel Sin and Dennis Chong, SCMP 14 October 2008

Chief Executive Donald Tsang Yam-kuen is expected to announce the speeding up of infrastructure projects development in his policy address to boost Hong Kong's economy and create more job opportunities in an attempt to minimise the impact of the global financial turmoil on the city.

A government source said speeding up the progress of infrastructure projects was the most effective way in the short run to shore up the economy.

"We are firmly committed to undertaking infrastructure projects and the need is highlighted particularly during the economic downturn," the source said.

The chief executive announced in last year's policy address that about HK$250 billion would be spent over the next decade to push forward 10 major infrastructure projects, including the bridge linking Hong Kong with Zhuhai and Macau, the Guangzhou-Shenzhen-Hong Kong Express Rail Link as well as the Sha Tin to Central Link.

The projects are expected to create 250,000 jobs. The government has been studying the possibility of starting some projects earlier but has to overcome some technical issues, such as co-ordination with Guangdong authorities.

Secretary for Development Carrie Lam Cheng Yuet-ngor said yesterday the crisis would not affect the government's determination to promote infrastructure development.

"On the contrary, the government can play the role of facilitating economic development and creating job opportunities by investment in infrastructure projects," she said.

The minister said she had instructed government departments under her bureau to consider ways to help revitalise the economy.

Mrs Lam said there was huge potential in assisting homeowners' renovation work, drainage and flood prevention work.

Undersecretary for transport and housing Yau Shing-mu said yesterday the government would speed up infrastructure spending in a bid to shore up the economy.

In an interview with Metro Radio yesterday, Mr Yau said construction of the Guangzhou-Shenzhen-Hong Kong Express Rail Link, as well as the western extension of the Mass Transit Railway's Island Line would start next year.

But he would not say in which quarter the projects would begin.

The MTR Corporation has amended its plans for the HK$39.5 billion express rail link between Guangzhou and Hong Kong by shifting its route westwards to avoid built-up districts in southern Hong Kong.

The cross-border link, which is expected to be completed by 2015, would shorten the rail journey to Guangzhou from nearly two hours to 48 minutes.

Patrick Lau Sau-shing, the legislator representing the architectural, surveying and planning sector, said the imminent downturn would be a good opportunity to start infrastructure projects as the pressure of rising construction costs would be eased.

Raymond Ho Chung-tai, the lawmaker representing the engineering sector, said the government should also consider future projects, such as the eastern gateway, or Liantang-Heung Yuen Wai Boundary Control Point, and the logistics park in north Lantau Island.