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6.

Part VI deals with the continuing obligations of the Company in respect of defects (section 17) and repair (section 18) after the completion of the construction works. The tunnel may be closed for repairs (section 20). The Company has the right to control the laying of pipes and other utilities in the tunnel subject to the Commissioner's approval, which may be withheld in the interests of safety or to prevent obstructions (section 21) the Government has powers of entry (section 22) and the Company must supply the Director with information relevant to his duties under this Part (section 23). Regulations can be made by the Governor in Council relating to the road tunnel area or generally to carry out the provisions of the Ordinance (section 24).

7. Parts VII, VIII and IX are broadly speaking similar to the analogous provisions of the Cross-Harbour Tunnel Ordinance (Cap. 203) or the Eastern Harbour Crossing Ordinance (Cap. 215) and provide for the operation of the road tunnel, the charging of tolls, by-laws and the manner of dealing with traffic offences and offenders. The Government may operate the tunnel in an emergency. The tolls which may be charged are set out in the Schedule. By section 36(5), when future tolls are determined, and if there has been a failure by a guarantor to comply with the terms of the further guarantee agreement, the Company is deemed to be in the financial position it would have been in had there been no failure.

8.

Part X deals with default by the Company or its guarantors and the revocation and expiration of the franchises. In the case of defaults which are capable of being remedied the Secretary for Transport must first call upon the default to be remedied before the matter is referred to the Governor in Council (section 46) and, if he fails to do so, the Governor in Council can require this of him (section 47). If a default occurs before the discharge by the guarantors under the guarantee agreement of their obligations, the guarantors are treated as a party to the proceedings (sections 46 and 47). Financiers of the project can appoint an agent to receive notice of default and they and the shareholders can make representations to show why the franchise should not be revoked. In addition to revocation the Governor in Council can vest the franchise rights in a third party (section 47(5)). Section 48 provides for the cessation of the franchise and the vesting of the assets of the Company in the Government in the case of the revocation of the franchise, on winding up or on the commencement of voluntary winding up otherwise than for the purposes of assignment. Where the franchise rights of the Company are determined prior to the completion

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