HONG KONG: Subway operator MTR Corp Ltd said it has entered into two project agreements with Hong Kong's government, of which the company will bear and finance construction costs totalling HK$17.78 billion (RM6.94 billion).

MTR Corp said it had entered into project agreements in relation to financing, design, construction and operation of the South Island Line (East) and Kwun Tong Line Extension.

In a filing to the Hong Kong bourse on Wednesday, May 18, the underground railway operator said it would arrange for third-parties to carry out development and be responsible for costs including government land premium, construction and labour.

The company derived benefit from property developments by sharing of profit with developers from the sale or lease of the properties after deducting development costs, it said.

Capital costs for the Kwun Tong Line were estimated at HK$5.35 billion and for the South Island Line at HK$12.43 billion based on 2009 prices, it added. — Reuters

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