The MTR Corp has been given the green light to proceed with the detailed planning and design of the Northern Link project, with an estimated price tag of HK$62 billion.

The 10.7-kilometer railway will cost almost HK$580 million per km, compared to the Shatin Central Rail Link's HK$5 billion per km and the Express Rail Link's HK$600 million per km.

The Executive Council yesterday gave the go-ahead for the government to invite the rail operator to press forward with planning the project, which comprises Kwu Tung Station and the construction of a 10.7-km railway link between that station and the existing Kam Sheung Road Station of the West Rail Line.

"MTR Corp proposed that the construction of the Northern Link would be carried out in two phases, while phase one would be the addition of Kwu Tung Station on the Lok Ma Chau Spur Line [of the East Rail Line]," a spokesman for the Transport and Housing Bureau said.

"Phase two would be constructing the Northern Link Main Line to connect Kwu Tung Station with Kam Sheung Road Station, with three intermediate stations at San Tin, Ngau Tam Mei and Au Tau," the spokesman added.

In a paper submitted to the Legislative Council, the bureau said the first phase of the project is expected to cost HK$3.5 billion, with construction expected to start in 2023 and be completed in 2027.

The second phase will cost HK$58.5 billion, with construction expected to start in 2025 and completion in 2034.

"The government will further negotiate with the MTRC on the financing arrangement of the project," the spokesman said.

Kwu Tung Station will serve the transport needs of the Kwu Tung North New Development Area which, upon full development, will accommodate 119,700 people and 33,300 jobs.

"It is estimated that the Kwu Tung Station will save the public a cumulative total of about 135 million hours over 50 years of operation. The economic benefits, including time saved, are estimated to be about HK$14 billion at 2015 prices," the spokesman said.

The second phase connects the East Rail and the West Rail lines, forming a loop of railway around the New Territories and Kowloon, improving connectivity between the east and west New Territories.

The new link will shorten rush-hour traveling time from Kwu Tung to Sheung Shui to three minutes from 15 minutes.

But former lawmaker Jeremy Tam Man-ho, who described public infrastructure construction as "always late, expensive and over-budget," worried the final cost could go up to HK$100 billion.

MTR Northern Link project gets go-ahead