The government said the Northern Link Spur Line rail project will be completed sooner than expected.

Officials said the Northern Link is a key transport infrastructure of Hong Kong’s future development, as it would become “the public transportation backbone” in the Northern Metropolis. In addition to the main line, the cross-boundary spur line will connect the metro networks of the SAR and Shenzhen, as well as the new Huanggang Port.

A government spokesman said in a statement that authorities are taking “a holistic planning and staged implementation strategy”, by combining the main and spur lines as one project for planning, to achieve synergies and realise cost savings.

"Adopting a result-oriented mindset, we would improve the construction efficiency through adopting railway-related mainland standards, practices and resources, substantially bringing forward the planning of the Northern Link Spur Line. The target is to commission the Northern Link Spur Line together with the Northern Link Main Line by 2034 or earlier, which is about two years earlier than what was originally envisaged," he said.

The chief executive in council on Tuesday approved the financial arrangement for part one of the Northern Link.

The Transport and Logistics Bureau signed an agreement with the MTR Corporation, and the capital cost of the project is estimated at about HK$31.4 billion.

The rail company was also granted 10 plots of land including sites at Kam Sheung Road Station, Fanling North, Kwu Tung North and San Tin, for residential and commercial development under the “Rail-plus-Property” model.

The government said a total of HK$39.05 billion would be deducted from the full market value land premium of the sites assessed on a “with-railway” basis in future, to support the building of the Northern Link.

Secretary for Transport and Logistics Mable Chan said on social media that the government will work with the rail firm to lower the cost of the project, while speeding up construction.

The government said works "that are more ready and time-critical" will begin immediately.

The MTR Corporation is also required to carry out the detailed planning and design of the spur line, including statutory procedures relating to the environmental impact assessment and railway scheme gazettal, and strive to finish the procedures as early as possible.