C.S. 166
CONFIDENTIAL ##
XCC(77)54
機密
39
Copy No Page 7 of 18
of 80
21
The Corporation is refining its present proposals, which have been developed from the 1970 report "Mass Transit Railway Further Studies", and sees the possibility of reducing the maximum debt to about $9,000 million by:
(a)
(b)
(c)
constructing more elevated and ground level sections than originally proposed as well as new horizontal alignments;
selecting the best design and construction methods on the basis of MIS experience;
savings on mobilisation costs for MIS contractors who carry out extension works;
cash injections from property development; and
(d)
(e)
obtaining additional revenue through concerted efforts to open all or part of the extension at the earliest possible date.
22
The Corporation is also investigating the possibility of ex- tending the MIS from Pedder/Chater Station to Western Market. Such an extension, which would relieve considerable congestion to the west of Central, looks attractive financially. As the extension might dictate some alterations to Chater Station presently being constructed for the MIS, the Corporation has started to investigate the possibilities. The advice of Members will be sought separately if, on transport, cost and feasibility grounds, such an extension appears desirable.
Assumptions underlying the Proposals
23
In formulating its proposals, the Corporation has made the following important assumptions, which are generally the same as those lying behind the MIS proposals (XCC(75)55):
(a)
the Corporation has based all its cost estimates on figures derived from 1975 MIS tender prices and has assumed an average rate of increase in prices of 7% per annum from 1975 to the end of the four- year construction period in 1982. include the cost of mobilisation, has assumed an overall project contingency of 5%, in addition to contract contingencies of 10% for civil engineering and 71% for electrical and mechanical contracts, as was assumed for the MIS;
These tenders The Corporation
CONFIDENTIAL #