THURSDAY, ATRER 17, 1991
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CHINA LIGHT AND POWER CO. LTD AND EXXON ENERGY LTD, TOGETHER WITH THEIR THREE WHOLLY OWNED GENERATING COMPANIES, SEPTEMBER 30, 1993;
THE HONGKONG ELECTRIC CO. LTD, DECEMBER 31, 1993;
HONG KONG AIR TERMINAL SERVICES LTD, DECEMBER 31, 1996;
HONG KONG AIR CARGO TERMINALS LTD, JUNE 27, 1997: AND
KOWLOON MOTOR BUS COMPANY (1933) LTD, AUGUST 31, 1997.
SHE SAID WITH THE EXCEPTION OF THOSE WITH THE POWER COMPANIES, THE ABOVE SCA'S FORMED PART OF THE COMPANY'S FRANCHISE WHICH EXPIRED AT THE SAME TIME AS THE AGREEMENT WHEREAS THE POWER COMPANIES DID NOT HOLD ANY FRANCHISE.
MRS CHAN ADDED THAT THE SCA WITH HONG KONG TELEPHONE CO. LTD LAPSED ON MARCH 31 THIS YEAR AND ALTERNATIVE REGULATORY ARRANGEMENTS WOULD BE FORMULATED IN THE COURSE OF THE CURRENT REVIEW OF TELECOMMUNICATIONS POLICY.
THE SECRETARY SAID THE BASIC PRINCIPLES GOVERNING THE OPERATION OF SCA'S WERE TWO-FOLD.
FIRST, THEY WERE INTENDED TO ASSIST THE GOVERNMENT IN ENSURING THAT CONSUMERS OF UTILITY SERVICES PROVIDED BY PRIVATE SECTOR COMPANIES RECEIVED AN EFFICIENT AND RELIABLE SERVICE AT REASONABLE COST.
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SECONDLY, THEY WERE INTENDED TO ENSURE THAT THE INVESTORS IN THE COMPANY RECEIVED A REASONABLE RETURN AND WERE THUS ENCOURAGED CONTINUE TO MAKE THE INVESTMENTS NECESSARY TO MEET GROWING DEMAND IMPROVEMENT IN SERVICE STANDARDS.
"THE ADMINISTRATION HAVE REVIEWED THE BASIC PRINCIPLES ÅND CONSIDER THAT, IN THE MAIN, THE CURRENT SCA'S HAVE FULFILLED THESE OBJECTIVES, MRS CHAN SAID.
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"WE KEEP UNDER CLOSE SCRUTINY THE PERFORMANCE AND EFFICACY OF INDIVIDUAL AGREEMENTS.
"MOST SCA'S CONTAIN PROVISIONS FOR REGULAR INTERIM REVIEWS OF OPERATION, WHEN MUTUALLY AGREED MODIFICATIONS TO THE AGREEMENT MAY BE MADE.'
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ON THE CRITERIA AND PROCEDURES ADOPTED BY THE GOVERNMENT IN NEGOTIATING SCA'S, THE SECRETARY SAID THEY DEPENDED IN PART ON THE NATURE OF THE COMPANY'S SERVICES AND OBLIGATIONS.
"WHERE A UTILITY COMPANY HAS BEEN GRANTED EXCLUSIVE RIGHTS BY GOVERNMENT ΤΟ PROVIDE A SERVICE IT WOULD FIRST BE NECESSARY ΤΟ DETERMINE WHETHER OR NOT TO GRANT OR EXTEND THE FRANCHISE BEFORE DETERMINING THE NEED FOR A SCHEME OF CONTROL AGREEMENT, MRS CHAN
SAID.
/SHE ALSO