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Draft Memorandum of Understanding with KMB

Annex P

1979

day of

A MEMORANDUM OF UNDERSTANDING made this

BETWEEN the COMMISSIONER FOR TRANSPORT for and on behalf of the Government

of Hong Kong (hereinafter referred to as "the Commissioner") of the one

part and THE KOWLOON MOTOR BUS COMPANY (1933) LIMITED, a company registered under the Companies Ordinance, whose registered office is situate at

1, Po Lun Street, Lai Chi Kok, Kowloon, Hong Kong (hereinafter referred

to as "KMB") of the other part.

WHEREAS pursuant to section 5 of the Public Omnibus Services

Ordinance (Cap. 230) (hereinafter referred to as "the Ordinance"), KMB

was granted a franchise to operate a public omnibus service, which said franchise (hereinafter referred to as "the franchise") was published in

the Hong Kong Government Gazette as Government Notice (S) 22 of 1975 in the Special Supplement No. 4 to Gazette Extraordinary No. 16/1975.

AND WHEREAS section 12 of the Ordinance requires KMB at all times

during the franchise period to maintain to the satisfaction of the

Commissioner a proper and efficient public omnibus service.

AND WHEREAS the parties hereto are desirous of reaching an understanding

as to the minimum requirements, without prejudice to generality of the

Ordinance and the franchise, to be met in determining whether a proper

and efficient public omnibus service is being provided by KMB.

NOW THIS UNDERSTANDING is as follows :

1.

The parties hereto agree that there are the following main crucial areas where operation of the franchise needs to be maintained or

improved, namely :-

(a) forward planning for the acquisition of sufficient numbers of

omnibuses and spare parts therefor for present and anticipated

needs and the phasing out of old omnibuses;

(b) adequate mechanical maintenance and servicing of omnibuses;

(c) provision of sufficient depots to accommodate all the omnibuses

and to provide therein proper facilities for the mechanical

maintenance of such omnibuses;

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