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(8) The Company to pay to Government the sum of $12 million as a contribution towards the cost of constructing roads and other engineering works which would not otherwise be required or would cost less if the tunnel were not built. This sum to be paid in 2 equal consecutive biennial instalmenta without interest commencing 24 months from the start of cautruction. Goverment undertakes to complete sufficient road works to enable the tunnel to operate as soon as it is complete and hopes to complete all ancilliary works by this time.
(9) The Company to raise not less than 2% of the capital cost of the turmel in the form of equity capital exolusive of any equity capital that may be contributed by Government,
(10) Government to be given the option of taking up to 29%
of any equity capital of the Company and, if Government takes up not less than 10% thereof, to be allocated acats on the Board of Directors of the Company in the sune ratio as the amount taken up beara to the total fasued equity capital (fractions of a soat not to count) but in any case not less than two scata.
(14)
(a) The Company to apply for and take all reasonable steps to obtain a quotation of its shares on the Hong Kong Stock Exchange before the second bruniversary of the opening of the tunnel for traffic or such longer period as may be agreed by the Governor in Comcil.
(b) The public to be given an opportunity to
participate in not less than 25% of the equity capital of the Company which shall be provided pro rata by all shareholders if called upon,
(12) Rates to be payable by the Company in accordance with
the provisions of the Rating Ordinance.
(13) The Company to furnish to Government before any majcar
contract de lat or commitments are entered into for construction, a complete atstement of its financing arrangements.
(14) The Govemor in Comcil to have power to approve or disapprove the fare structure but not so as to deny the Company a reasonabile return on its capital. The initial basic fare structure shall be: $2.50 for a private car, $5.00 for a double-decker bus and $7.50 for a lorry,
(15) Government to have powers to take over the undertaking
in the event of serious default on the terms of the franchise with such compensation for the assets as may be determined by arbitration less such penalty as the Governor in Council may deem appropriate, and to impose penalties by way of fines for lesser infringements.
(16) On termination of the franchise the physical assete of
the Company to revert to Government without compensation, except that the cost of any machinery and equipment purchased in the final 5 years with the agreement of Government to be reimbursed at the depreciated value for Inland Revenue purposes.
(17) Government to have powers to impose safety requirements
and to enable the Police to control traffic provided that within the tunnel the Company would be required to provide its own polioing arrangements for which bye-laws would be enacted,
(18) The tunnel to be completed within 5 years from the date
on which the offer of a franchise by the Government is accepted by the Company or such extended period as the Governor in Comcil may allow, failing which the franchise to terminate without compensation.
(19) The Company to permit on request electric power cables,
telephone and other communication cables, water, and other pipes to be run through the tumel if technically possible, provided the capital cost of installation la borne by the owners. The Dompany to be entitled to charge a reasonable fee for providing such facilities, such fee to be determined in the absence of agreement by arbitration. Government does not guarantee any wayleave for any public utility to or from the tunnel.
(20) The Company, on request by the Colonial Secretary and if necessary, to give priority to Crown vehicles 1.0. vehicles on His Excellency the Governor'a oatablishment, veldolea of H.M. Armed Forces and those of the Police and Fire Services including anbulances and such other vehicles as the Colonial Secretary may from time to time consider warrant priority, and no other priority shall be given.
(21) (a) The Company to be permitted, subject to the
Agreement of Government, to advertise on the tumnal structure and toll booths.
(b) The Company to be permitted, subject to the
agreement of Government, to adverbias on the approaches of the tunnel i.e. the areas for which the Company is responsible for construction aa defined in sub-paragraph (25) below but excluding any development carried out by Government in excraise of Government's development rights as stated in sub-paragraph (6).
(e) Permission to advertise may be refused where this would interfere with safety requizaments or where in the opinion of the Colonial Secretary it may be unsightly or unsuitable.
(22) During construction of the tunnel the Company to take
all reasonable stepa to minimise interference with shipping and harbour traffic and to comply with such safety precautions as may be required by the Director of Marine. Any spoil which is dredged to be disposed of ad approved by the Director of Public Works' and after the tunnel construction is complete the gea bed including any protective mound or backfilling shall be restored so as to be at least 40 foot below Mean Low Water Ordinary Spring Tide where the sea bed is now 40 feet or more below Mean Low Water Ordinary Spring Tide and elsewhere shall generally be in accordance with the profile show in drawing 1.2 in Volume II of the Joint Consulting Engineers Report of April 1961.