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FRIDAY, JUNE 20, 1986
SIGNIFICANT STEP FOR EASTERN HARBOUR CROSSING
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THE MUCH AWAITED EASTERN HARBOUR CROSSING PROJECT HAS TAKEN A SIGNIFICANT STEP FORWARD WITH THE GAZETTING TODAY (FRIDAY) OF A BILL WHICH GIVES LEGISLATIVE EFFECT TO THE GRANT OF FRANCHISES FOR THE PROJECT.
THE EASTERN HARBOUR CROSSING BILL 1986, IF ENACTED, WILL ENABLE THE NEW HONG KONG TUNNEL CO. LTD. A CONSORTIUM LED BY KUMARA! GUMI LTD. AND INCLUDING PAUL Y LTD., LILLEY CONSTRUCTION LTD. AND CHINA INTERNATIONAL TRUST AND INVESTMENT CORPORATION TO PRIVATELY FINANCE AND BUILD A COMBINED ROAD AND RAIL TUNNEL BETWEEN QUARRY BAY AND CHA KWO LING AND TO OPERATE THE ROAD PORTION OF THE TUNNEL.
UNDER THE TERMS OF THE FRANCHISE THE NEW HONG KONG TUNNEL CO. LTD. MUST TRANSFER ITS RIGHT TO OPERATE THE RAILWAY LINE LINKING KWUN TONG STATION WITH QUARRY BAY TO THE MASS TRANSIT RAILWAY CORPORATION THROUGH A SEPARATE COMPANY (THE EASTERN HARBOUR CROSSING COMPANY). THE MTRC WILL LEASE THE RAILWAY FACILITIES FROM THE COMPANY FOR AN AGREED STREAM OF PAYMENTS.
THE TOLL FOR PRIVATE CARS AND TAXIS WILL BE $10 WHEN THE ROAD TUNNEL OPENS IN EARLY 1990 WITH HIGHER TOLLS FOR OTHER CLASSES OF VEHICLES.
THE FRANCHISE PERIOD FOR THE ROAD TUNNEL IS 30 YEARS FROM THE START OF CONSTRUCTION AFTER WHICH OWNERSHIP OF THE ROAD TUNNEL PASSES TO THE SAR GOVERNMENT. THE FRANCHISE PERIOD FOR THE RAILWAY IS 18 YEARS AND SIX MONTHS FROM THE RAIL OPERATING DATE. CONSTRUCTION OF BOTH THE ROAD AND RAILWAY WILL BE COMPLETED IN ABOUT 42 MONTHS.
WITH THE PASSING OF THE BILL, ALL STATUTORY AND LEGAL REQUIREMENTS FOR THE PROJECT WILL HAVE BEEN COMPLETED ENABLING AN OFFICIAL START TO BE MADE ON THE PROJECT BY EARLY AUGUST OF THIS YEAR.
PREPARATORY WORK HAS ALREADY STARTED ON THE PROJECT AND MOST OF THE LAND REQUIRED FOR THE PROJECT HAS BEEN MADE AVAILABLE,
ON THE ROAD OPERATING DATE THE ISSUED AND FULLY PAID-UP COMBINED SHARE CAPITAL OF THE ROAD AND RAIL COMPANIES WILL NOT BE LESS THAN $1.1 BILLION. THE GOVERNMENT WILL BE GIVEN A SMALL EQUITY HOLDING IN THE ROAD COMPANY AND THE GOVERNOR WILL HAVE THE POWER TO APPOINT TWO DIRECTORS TO THE ROAD COMPANY'S BOARD.
THE SCHEME HAS BEEN GAZETTED UNDER THE ROADS (WORKS, USE AND COMPENSATION) ORDINANCE AND THE MASS TRANSIT RAILWAY (LAND RESUMPTION AND RELATED PROVISIONS) ORDINANCE.
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