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Wednesday, February 14, 1973
"This conclusion, in turn, has strengthened the Government's belief
that the system would be financially viable, in the sense that sufficient
cash flow would be generated to enable the capital cost and accumulated
interest to be repaid from the revenue from fares and other sources, over a
given period of years, " he said.
But whatever arrangements were made to finance, construct and equip
the Mass Transit Railway, he went on, a special body would be needed to
implement the project.
Government Supervision
Mr. Haddon-Cave said an entity would also be required to operate
and maintain the system after it was constructed, but in this respect the
sheer size and nature of the project had created requirements which were in a
way "conflicting."
He explained that on the one hand the system would need to be operated
on commercial lines if its financial viability was to be assured.
"On the other hand, the magnitude of the capital requirement, the
length of the construction period, and the important role which the system
will have to play in the Government's overall transport policy in the 1980s,
all point to a greater degree of Government supervision and control than has
hitherto been applied to public utility undertakings in Hong Kong," he said.
With regard to these factors, it had been decided that the operation
of the Mass Transit Railway should be entrusted to a public corporation established
under special Ordinance.
"This corporation
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