http://www.bloomberg.com/apps/news?p…jC6nssgo&pos=6
By Wing-Gar Cheng and Wendy Leung
Jan. 16 (Bloomberg) — Hong Kong lawmakers approved funding for a HK$66.9 billion ($8.6 billion) train line linking the city with Chinas high-speed rail network.
Lawmakers voted 31 to 21 to ratify the project, which had been delayed twice amid objections about the cost and homes that will be destroyed in the rural New Territories, said Emily Lau, chairwoman of the finance committee.
The train line will plug Hong Kong into Chinas network by 2015, cutting travel times and deepening Hong Kongs links with the worlds fastest-growing major economy. The railway is one of the 10 infrastructure projects that Hong Kongs government plans to help boost its economy.
We support this project because the economic benefits it can bring are very important to Hong Kong, lawmaker Paul Tse said in a legislative council meeting today. Hong Kong needs to look into the future and consider the jobs that the project would create, the tourism opportunities with more people traveling between Hong Kong and China.
Hong Kongs government plans to construct an underground terminal in the citys West Kowloon district, across Victoria Harbor from Hong Kong Island. Hong Kong-based MTR Corp. will construct the link at a cost of HK$2.57 billion per kilometer.
Demonstrators chanted slogans and waved banners outside the council building, demanding that the government review the project as it will cost too much and destroy village homes in the rural New Territories.
Protests, Clashes
Radio Television Hong Kong said as many as 10,000 demonstrators had gathered outside the building. Some protestors clashed with the police as they tried to break through metal barriers to get into the building, local television footage showed.
The polices public relations branch wasnt able to immediately comment on the protest, or give an estimate on the number of demonstrators.
The train will travel at speeds of up to 350 kilometers per hour (217 miles an hour), cutting the travel time from Hong Kong to Beijing by two-thirds to eight hours, the government said in a paper presented to lawmakers.
The high-speed railway will save the Hong Kong public 40 million hours per year, generating an annual economic rate of return of 9 percent annually, according to the governments paper to the Legislative Council.
Hong Kongs government believes the project will generate a profit and it wont need to rely on bank loans for funding, Eva Cheng, secretary for transport and housing, told lawmakers today.
Start Construction
Were looking to start construction as soon as possible and this is also the wish of the majority of the Hong Kong people, Cheng said at a press briefing after the meeting. We will monitor work on the project very closely.
The railway is one of 10 infrastructure projects that Hong Kongs government plans to help boost its economy. It also intends to construct a bridge linking Hong Kong with the gambling enclave of Macau and the city of Zhuhai across the border from Macau.
The government still hasnt yet given any details on how it will ensure the project will generate profit, lawmaker Cyd Ho, who voted against the funding, said. I hope that the government wont return to the legislative council again to seek additional funding.