0003160 G.F. 316
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- 5 -
Add contingencies (15% for civil works
and 7.5% for E & M)
Less original provisions made by the consortium for:
HK$ mn
(3,399)
381
3,780
Contingencies
27
Cost of establishment, project
management, etc.
230
257
3,523
Add:
Exchange rate adjustments (cf.
paragraph 6 above and paragraph 22 below)
255
Provision for unforeseen
circumstances
500
Cost of establishment, project
management, etc.
327
Cost escalation from 1st May 1973
to date of completion of
construction (at 8% p.a.)
1,170
2,252
Assumed contract price
5,775
20
as follows:
The column headings used in the cash-flow table are explained
(a) the Corporation's own cost consists of:
(i)
land acquisition costs, estimated at $200 mn at mid-1973 prices, less possible resales of surplus land estimated at $50 mn at mid-1973 prices;
(ii) site investigation costs (including soils investigations and diversions of utility services) estimated at $41 mn;
(iii)
(iv)
(v)
Consulting Engineers' fees, estimated on the basis of their present fees, but adjusted to take account of the consortium's proposal to take over the detailed design of the system;
site supervision costs, estimated at $130 mn;
MTR Corporation management costs, estimated at $152 mn over the construction period of Stages 1-4; (subsequent management costs are included in operating expenses).
(b) The assumed contract price is as set out in paragraph 19 above.
(c)
Replacement of equipment is assumed to take place at the end of the life of the asset concerned as predicted by the Consulting Engineers, at prices prevailing in the year of replacement.
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/.... (a)