The Construction Works Agreement
In this Bill, the Administration
not have
included
the Construction Works Agreement as they did in the Eastern The Legee Ad hoc group accepted Harbour Crossing Ordinance.
a substantial part of the
Construction Works Agreement will no longer be relevant to the
tunnel operation once the construction works are completed.
that this is a better arrangement as
lu
の
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The guarantee contracts
Consumers will be protected from unanticipated toll
increase through a series of guarantees given by the Consortium
members which will ensure a low initial toll and a stable toll The initial toll for the first year is already published in the schedule to this Bill.
contained in the guarantee structure. These guarantees are agreement
ement and further guarantee agreement" referred to in the Bill. The guarantee
guarantee agreement is essentially a performance timely by members of the Consortium guarantee completion of the tunnel and approach roads within 37 months.
On the other hand several basis. The This guarantee is given
various undertakings
вс
lift
further
a joint and guarantee agreement contains
on
assuring
which will prevent cost increase due to fluctuation in interest rates, escalation in construction costs, lower than projected operation
for the
tire
first
and years,
delay operating income completion, from being translated directly into toll increases.
in
The guarantee agreements will not be enforced under
Nevertheless,
this particular legislation.
they are
an
They have
important part of the franchise which will be granted to the funnel Company by the enactment of this Ordinance.
been executed as contract documents between Government and the
fifonsortium and if the Consortium members fail to perform these
-obligations
contract.
the agreements
will be
enforced
as breach
of