*

In the circumstances, the Government has decided that further.

consultations should be held with 'several of the consortia with a view'

to obtaining, to the maximum extent possible and within a strict time

schedule, the information necessary for a decision to be reached. I

must emphasise, for the avoidance of doubt, that the fact that the

Group is to hold further consultations with certain consortia does

1

not indicate a preference for the single-contract approach. In other

words, I must emphasise that a decision on the approach to be adopted

has yet to be made.

But, whatever arrangements are made to finance, construct and

equip the Mass Transit Railway, there will have to be a body responsible for implementing the project though the extent to which the responsible body would have to build up its own engineering design and project

management capability for these tasks would depend on whether a single

or multi-contract approach was adopted. An entity will also be required

In this respect,

;

to operate,and maintain the system after construction.

$

the size and nature of the project have created requirements which are,

in a way, conflicting. On the one hand, the system.will need to be

operated on commercial lines if its financial viability is to be assured, On the other hand, the magnitude of the capital requirement, the length

of the construction period, and the important role which the system will

have to play in the Government's overall transport policy in the 1980s,

all point to the need for the operating authority to be subject to a

greater degree of Government supervision and control than has hitherto

been applied to public utility undertakings in Hong Kong. Having regard

to all those factors, the Government has decided that the operation of

- the Mass Transit Railway'should be entrusted to a public corporation

/established

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