further studies which were completed in August 1970. The final proposals put forward were for a system with 48 stations and a total route length of 32.7 miles, to be developed in nine distinct stages.
The Hong Kong Government, after detailed consid- eration of these proposals and of the future "movement problem" in general, decided in principle in April 1972 to proceed with the construction of the mass transit railway, subject to satisfactory arrangements being made for financing the project. This decision in principle was reaffirmed in February 1973, when the Hong Kong Government also decided firmly to proceed as soon as possible with constructing the first four of the nine stages of the railway. (The first four stages were reckoned to be the minimum system which could be operated on a commercially viable basis: further stages beyond stage 4 would be extensions to the basic system).
It is difficult, if not impossible, accurately to estimate the total capital expenditure or the full system. For the first four stages alone, the cost of construction and equipment is currently estimated at between Hong Kong dollars 5,600 and 6,000 million, (about pounds sterling 470-500 million) spread over five to six years.
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The substantial amount of capital involved is expected to be met largely (about 60 per cent) from export credits of the E.C.G.D. type. Another 15-20 per cent would be met from an equity contribution from the Hong Kong Government, and the balance would be raised from a mixture of market sources (e.g. bank loans, Eurobonds, etc.). Apart from the Hong Kong Government's equity contribution, the capital expenditure is expected to be repaid entirely from the fare and other revenue (e.g. revenue from advertising) generated by the system.
A Hong Kong Government Steering Group is currently in consultation with a number of groups interested in building the railway with a view to negotiating a
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