Construction cost of the West Island Line is expected to be HK$6 billion-HK$7 billion, said MTRC chief executive Chow Chung-kong.

The new line, Chow said, will take four to five years to complete, and will be a three-kilometer extension of the Island Line starting from Sheung Wan, with three new stations at Sai Ying Pun, University and Kennedy Town.

On completion of the West Island Line, Chow said travel time from Kennedy Town to Central would be seven minutes, to Causeway Bay 13 minutes and to Tsim Sha Tsui 14 minutes. He also said fares for the new lines will be similar to the MTR's current fare structure.

Speaking after an Executive Council meeting, Secretary for Environment, Transport and Works Sarah Liao said the planned West Island Line will be a convenient alternative to commuters in both the Western and Central districts who now rely mainly on other modes of public transport.

She said "the new rail line will generate significant transport and economic benefits to the community.''

Liao added that, at present, there is congestion along the main corridors in Western District during rush-hour when traffic lines along Queen's Road Central and Des Voeux Road Central can be as long as one kilometer.

"As Western District is fully developed, there are serious constraints in constructing any new roads to alleviate the traffic congestion problem. The West Island Line will divert passengers from road-based transport to rail services and is, therefore, fully justified on transport grounds,'' Liao said.

She said the government will begin negotiations with the MTRC on the detailed scope, cost and implementation program for the West Island Line.

It was welcome news for Central and Western district council member Stephen Chan. He urged the MTR to start construction as soon as possible.

"Seven years of construction is far too long as we have been fighting [for an MTR line] for more than 20 years,'' Chan said.

Legco transport panel chairman Lau Kong-wah urged the government to speed up discussions with the MTR for the project to begin next year.

Responding to the MTR extension to Kennedy Town, a spokeswoman for both Citybus and New World First Bus admitted that it will have an impact, but said it is "too early to assess'' the effect at this stage.

With regard to financing the new line, Chow said that as it was an infrastructure project, the government will have to subsidise part of the cost in order to allow the MTR to get a "commercial return on the investment.''

"But if you look at it from an infrastructure investment point of view and a public spending point of view, it's a very cost effective way for the government,'' Chow said. This was because while the government has to meet 100 percent of capital investment and recurring maintenance costs for infrastructure like roads and highways, with the MTR, "normally'' the level of government support was less than 50 percent of capital expenditure.

Chow said the MTR would continue to discuss financing options such as property rights, cash payments, capital injection and paying dividends with the government but said it was difficult to say when an agreement would be reached.

Meanwhile, the MTR said it will continue studying the proposed South Island Line, which has two sections, taking into account the latest proposals for tourism and commercial development of Southern District and Ocean Park. "According to our calculations, if the South Island Line is built, 30,000 jobs would be created in the area,'' Chow said.

The proposed eastern section would run seven kilometers from Admiralty via Ocean Park, Wong Chuk Hang and Lei Tung to South Horizons.

The western section would run for eight kilometers from University station via Cyberport, Wah Fu and Aberdeen to Wong Chuk Hang.

chester.yung@singtaonewscorp.com

danny.chung@singtaonewscorp.com