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WEDNESDAY, JULY 2, 1986
+ THEY CAN ONLY BE ALTERED WITH THE AGREEMENT OF THE GOVERNOR- IN-COUNCIL, OR FAILING AGREEMENT, FOLLOWING ARBITRATION,+ MR GREWAL SAID.
PART XI OF THE BILL PROVIDED FOR THE OPERATION OF THE RAIL TUNNEL BY THE MTRC WHILE PART XII PROVIDED FOR THE REVOCATION OF THE FRANCHISES, THE KEY POINTS BEING THAT IN THE EVENT OF DEFAULT CREDITORS OF THE COMPANIES WOULD BE GIVEN FIRST OPTION FOR MAKING SUITABLE ARRANGEMENTS FOR OVERCOMING DEFAULT AND ONLY IN THE EVENT OF THEIR FAILURE WOULD REVOCATION TAKE PLACE.
MR GREWAL SAID THAT THIS DEPARTURE FROM PROVISIONS IN THE CROSS HARBOUR TUNNEL ORDINANCE WAS SEEN AS NECESSARY TO ASSIST IN THE RAISING OF PROJECT FINANCE AND INCREASING THE CONFIDENCE OF POTENTIAL LENDERS.
IN THE FINAL PART OF THE BILL THERE WAS PROVISION FOR APPEAL TO THE GOVERNOR-IN-COUNCIL AGAINST ANY REQUIREMENTS IMPOSED BY AUTHORITIES UNDER THE ORDINANCE, AND WITH RESPECT TO THE CONSTRUCTION ELEMENTS IN A DISPUTE WITH THE DIRECTOR WHERE FAILURE OF THE APPEAL WOULD PLACE THE COMPANIES IN DEFAULT, THE GOVERNOR WOULD REFER SUCH A DISPUTE TO ARBITRATION.
EARLIER MR GREWAL TOLD THE COUNCIL THE BACKGROUND OF THE PROJECT AND THE CIVIL CONTRACTUAL ASPECTS OF THE BILL. HE SAID HE THOUGHT IT RELEVANT TO RECORD THAT COMPETITION FOR THIS VITAL NEW LINK IN THE TRANSPORT INFRASTRUCTURE WAS INTENSE AND THAT THE NEGOTIATED DEAL WAS SATISFACTORY AND BENEFICIAL FOR THE PEOPLE OF HONG KONG.
HE SAID THAT IN SEPTEMBER 1984 THE GOVERNOR-IN-COUNCIL DECIDED THAT THE NEXT HARBOUR CROSSING SHOULD BE A FOUR-LANE ROAD TUNNEL BETWEEN CHA KWO LING IN EAST KOWLOON AND TAI KOO SHING ON THE ISLAND.
IT WAS TO BE FINANCED, CONSTRUCTED AND OPERATED BY THE PRIVATE SECTOR ON TERMS SIMILAR TO THOSE OF THE EXISTING CROSS HARBOUR TUNNEL, AND IT WAS FOR CONSIDERATION BY POTENTIAL DEVELOPERS IF A RAIL TUNNEL COULD BE PROVIDED ON THE SAME ALIGNMENT.
+ON APRIL 1, 1985, NINE CONSORTIA OR INDIVIDUAL COMPANIES SUBMITTED PROPOSALS AND IN JULY 1985, AFTER A VERY DETAILED ANALYSIS, THE GOVERNOR-IN-COUNCIL DECIDED TO GO AHEAD WITH A COMBINED ROAD-MTR TUNNEL AND TO INVITE REVISED PROPOSALS FROM A SHORT LIST OF THREE CONSORTIA.
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