Cost of Hiram’s Highway Stage 2 widening reduced by $460 million, and the construction period shortened from eight years to six years

A document submitted to the Legislative Council on Wednesday (23/10) pointed out that a slimmed down plan has been proposed for the Hiram’s Highway widening stage 2 between Marina Bay and Sai Kung Town, resulting in the cost estimate being reduced from the original HK$3.289 billion by 14%, or HK$460 million to HK$2.7489 billion, and the construction period will be shortened by two years to six years.

The projection information submitted by the Transport and Logistics Bureau to the Legislative Council Public Works Subcommittee shows that the purpose of the project is to increase vehicle capacity to relieve traffic congestion, receive tourists, and improve road safety, improving road accessibility, enhancing emergency response capabilities. It is expected to shorten the journey from Sai Kung town to Clear Water Bay Road by half to 20 minutes. The authorities pointed out that the new projected budget is HK$2.7489 billion, which is a decrease of about HK$460 million, or 14%, compared with last year’s consultation with the Legislative Council Transport Committee of about HK$3.289 billion.

The length of the second phase of the project is 4.6 kilometres, nearly twice as long as the first stage, and the budget is HK$1 billion higher. However, the unit price per kilometre of the second stage of the project is HK$600 million, which is HK$140 million lower than the first stage, a decrease of 19%.

As for the decrease in project budget costs, the authorities stated that the main reason is the use of more cost-effective design solutions, such as optimised foundation and retaining wall design, wider use of shared trenches, and increased efficiency gained from the construction experience of Sai Kung Highway Phase 1.

If the application is approved by the Public Works Group, the authority expects to adopt the “preliminary contractor participation” model next year, if approved by the Finance Committee in November, and simultaneously carry out detailed design and preliminary construction works, such as building temporary passages, laying temporary water pipes, and conducting site and tree surveys. Construction projects such as widening roads, slopes and retaining walls will be fully launched in 2026, and the Tai Mong Tsai Road section will be completed in 2030, followed by the completion of ordinary road sections and Hiram’s Highway in 1 to 2 years.

A link to the full report is here.