New Hong Kong transport chief faces first tough questions over funding rail projects

Mable Chan non-committal over potentially issuing bonds to fund six projects forecast to cost HK$300 billion

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The government has been pushing ahead with a number of rail projects linked to new town developments. Photo: Jonathan Wong

Published: 3:33pm, 6 Dec 2024Updated: 4:44pm, 6 Dec 2024

Newly appointed Hong Kong transport minister Mable Chan has quickly found herself in the hot seat answering questions about how to finance six rail projects forecast to cost more than HK$300 billion (US$38.5 billion) amid a weak economic environment.

Chan was non-committal on Friday over the potential issuing of bonds to fund the projects as she replied to lawmakers’ queries for the first time in her new role, saying the decision would depend on the financial planning of the city’s rail operator.

Lawmaker Michael Tien Puk-sun, a former chairman of the Kowloon-Canton Railway Corporation, suggested the developments could stall as market conditions worsened.

“There are a bunch of rail projects being built right now, costing more than HK$300 billion,” he told the Legislative Council’s transport panel meeting.

Tien said the MTR Corporation was only granted land to develop projects, but “it has no money and its market value is only about HK$170 billion”.

“Will the government issue bonds to fund the projects? Otherwise, even after 20 years, we still won’t see them become a reality amid the current worsening market conditions,” he said.