19

the Junk Bay Tunnel

Tunnel should proceed as part of the Public Works Programme because :-

(a) on the basis of current traffic projections the operation of the tunnel is unlikely to be commercially viable. However, operation by the private sector may be possible within the context of a wider privatisation exercise and this is now under consideration;

(b)

(c)

any delay in the proposed implementation programme could have serious implications for the provision of water to East Kowloon and Junk Bay;

furthermore, since there is no financial benefit in constructing the two tubes of the tunnel simultaneously, it seems prudent to phase the construction of the second tube. Simultaneous construction within the Public Works Programme could well prevent other more urgent projects from being included in the 1987 programme.

Consultation

20

circles.

There has been no consultation outside official

Public reaction

21

Any delay to the commencement of the Project is likely to result in unfavourable comment and raise questions about Government's commitment to the development of Junk Bay. Any deterioration in the water supply to East Kowloon and Junk Bay would result in an unfavourable public reaction and criticism.

Publicity

22

Normal publicity will be given at the award of contract stage.

Financial and staffing implications

23

process,

consider

As part of the normal Public Works Programme

of the Public Works the financial and staffing

members

upgrading to Category A is sought.

Sub-Committee

implications

will

when

CONFIDENTIAL

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