TATE'S CAIRN TUNNEL
Ord. No. 50/88
A263
(c) the revocation of the franchise under section 47(4)(b); or
(d) on the expiration of the period specified in section 4(2), whichever event first occurs.
(2) Upon the determination of the rights and obligations of the Company under this section the assets of the Company shall vest in the Government.
49. (1) On the determination of the rights and obligations of the Company under section 48(1), the Company shall thereupon be liable, in addition to the payment of all other sums due to the Government, to pay
(a) all sums payable under the project agreement; and
(b) any expenses which may be incurred by the Government—
(i) in putting any land and any incomplete construction works in a satisfactory order to enable the construction works either to be maintained in a state in which they can be continued at a future time or abandoned as the Director may determine, including any costs of land restoration; and
(ii) in putting the construction works in a safe condition.
(2) Subject to subsection (4) and section 50 on the determination of the rights and obligations of the Company under section 48(1), the Govern- ment shall be liable to pay to the Company in respect of the assets of the Company vesting in the Government under section 48(2) such amount as may be agreed between the Government and the Company as representing the value of such assets to the Government at the time of vesting or, in default of such agreement, such amount as may be determined by arbitra- tion under the Arbitration Ordinance.
(3) In determining the value for the purposes of subsection (2) where the vesting of the assets in the Government is in consequence of a default, there shall be deducted from what would, but for this subsection, be the value of the assets, such amount as may be agreed or determined in accordance with the provisions of that subsection for-
(a) damages occasioned to the Government by such default calculated on the basis that the construction works had been, or are to be, constructed, for the beneficial use of the Government and that the Government is the franchise holder under Part II;
(b) the costs to the Government of obtaining the forfeiture of the
franchise under this Part.
(4) No amount shall be payable to the Company under subsection (2) upon the determination of the rights and obligations of the Company under section 48(1)(c) where the revocation of the franchise was on the grounds that the Company had failed or appeared likely to fail to complete the construction works within the period or extended period allowed by sec- tion 14.
Liability of the Company and amount payable by the Government on the vesting in it of its assets
(Cap. 341)
50. No compensation shall be payable by the Government to the Reimbursement Company upon the expiration of the period specified in section 4(2), save of Company that the Government shall pay to the Company the reduced value of any upon expiration machinery, equipment or plant forming part of the assets (such value being calculated in accordance with Part VI of the Inland Revenue Ordinance) (Cap. 112) purchased by the Company with the agreement of the Financial Secretary within the 5 years next preceding the expiration of the period of the franchise and owned by the Company on such expiration.