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NOTE
Cross Harbour Tunnel, Hong Kong
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In 1959
business interests in Hong Kong formed a
company to investigate the possibilities of a link between
Hong Kong and Kowloon. A study was completed (by Scott,
Wilson Kirkpatrick and Freeman, Fox Ltd.) in 1961 which
confirmed that such a link was technically and financially
feasible. In 1963 the Hong Kong Government said that it
had no objection to the construction of a tunnel (but not
a bridge). In 1965 the Hong Kong Legislative Council
passed a Resolution approving the grant of a 30-year
exclusive franchise to the Company for the construction
of a four-lane tunnel, on payment of a 121% royalty on
gross operating receipts. In addition the Company
was to pay for the way leave rights on and rent for
Crown land, and to contribute to the cost of connecting
roads. Not less than 25% of the capital cost of the
tunnel was to be in the form of equity capital and the
Government had the option of taking up to 25% of any
equity capital. The Resolution also laid down an
initial fare structure for use of the tunnel.
2. The authorised capital of the Cross Harbour Tunnel
Co., Limited (£625,000) was to be increased to £74
million, to be held in the following proportions:-
Wheelock Marden & Co., Ltd.
37398
Hutchison International Ltd.
371%
Hong Kong Government
121%
Hongkong and Shanghai Bank
10%
Minor Shareholders
2%
3.
In inviting tenders to build the tunnel the Tunnel
Company stated that its shareholders would provide £7.5 million of which up to £3.75 million would be needed for
approach roads and miscellaneous charges. Contractors
would be required to arrange finance for the balance, re-
payable over a period of eight years from completion.
/It