Plans by the MTR Corp to build its HK$15bn (US$1.9bn) West and South Island railways on Hong Kong Island are facing an uncertain future amid opposition from public transport operators.

Most of the railway would be built in tunnel. The scheme has been split into three sections totalling about 7.5km.

Stage one involves extending the existing Island Line from Sheung Wan to Sai Ying Pun. Phase two calls for building the West Island Line from Sai Ying Pun to Wong Chuk Hang on the south side of Hong Kong Island. Stage three would complete the loop to Wan Chai where it would connect with the existing Island Line.

But government insiders say anticipated population growth only justifies construction of the link to Sai Ying Pun and the West Island Line. Protests by bus operators at the end of May encouraged local legislators to block any further government studies into the rail plans.

MTR Corp said the comments, reported in mid-June, were speculation, while a government spokeswoman would only say a final decision would be made by the end of the year. MTR has already said the complete system could only be built if the government was prepared to finance half the cost, either through a cash injection, equity, or a mix of cash and property development rights. Russell Black, MTR Corp project director, said the scheme would be scrapped without government assistance.