Slaughter and May advised MTR on the Tung Chung Line Extension project
Slaughter and May advised MTR Corporation Limited (MTR) on the project agreement for the financing, design, construction, completion, pre-operation, operation and maintenance of the Tung Chung Line Extension (TUE).
The Project Agreement for the Tung Chung Line Extension is very significant for Hong Kong as it is the first for Hong Kong’s “Railway Development Strategy 2014”.
The TUE project involves the extension of the existing Tung Chung Line and the construction of two new stations, namely a new Tung Chung East Station and a new Tung Chung West Station to become the new terminus of the line. The agreement also addresses the construction of the Airport Railway Extended Overrun Tunnel (ARO).
The Project Agreement also addresses property development in the vicinity of the TUE. The TUE proposed development site is approximately 7.61 hectares and its proposed uses are residential, commercial, railway facilities and public transport interchange. MTR will be permitted to undertake commercial and residential property development which will contribute to the financial return of the TUE project.
It is expected that the construction of the TUE will commence in the middle of 2023 for target completion in 2029.