The initial estimate for the project was HK$5,053,274, which included the cost of excavating a tunnel through the Kowloon hills at Beacon Hill and reclamation in Kowloon for a terminus. However, underestimation of the challenges, changes in design, depreciation of the Hong Kong dollar against the pound sterling (much of the equipment had to be imported from Britain), difficulties in recruiting suitable labour coupled with a high mortality and sickness rate amongst the workers (malaria, beri beri and dysentery were endemic in Hong Kong at that time) and right-of-way land acquisition costs greatly pushed up the final cost of the project.