14
Further possible development sites in association with other stations will be examined and, if recommended for development, will be the subject of a separate submission.
Summary of Overall Advantages
15
The advantages of extending the Mass Transit Railway to Tsuen Wan West as soon as possible in terms of transport, cost and construction capacity were set out clearly in memorandum XCC(77)54. The proposals as then defined are now amended to the extent described above, involving as they do different land costs, property development proposals and some resumption and clearance which would not otherwise have been necessary. The revenue and passenger traffic should not be greatly affected. In summary, the overall conclusion is that the Governor in Council's decision in principle that the Tsuen Wan Extension should proceed forthwith is not significantly affected.
Equity for the Depot Site
16
Although, as stated above, the overall view of both the Govern- ment and the Corporation is that the project should proceed as now planned, the Corporation's financial position is altered. In approving the proposals in memorandum XCC(77)54 (Annex A), Honourable Members noted that they would involve a Government equity contribution of $170 million in Crown land premia in respect of the Kwai Chung Depot. The Corporation has requested that the Government should also agree to accept equity in payment for the new depot site and for any additional land costs which may derive from the change of alignment in Tsuen Wan and the depot site.
17
It is proposed that one grant should be made of the whole site encompassing Tsuen Wan (Central) Station and Tsuen Wan Depot, together with the access lines which form an integral part of the depot and station. It is expected that the premium for this railway portion of the site will not exceed $190 million based on current value.
18
Unlike the depot site at Kwai Chung, the Tsuen Wan depot site is presently for the most part in private hands. In the circumstances, it is difficult to argue that the Corporation's cash outlay should increase because the depot will have been moved from a site that is on Crown land to one that is not. In recognition of this situation, it is proposed that the premium of $190 million maximum for the railway portion of the site in Area 6, Tsuen Wan, should be paid in equity.
CONFIDENTIAL