XN000022-1973-08-01 — Page 2

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Wednesday, August 1, 1973

SINGLE CONTRACT APPROACH FOR MASS TRANSIT

The government has decided in principle to adopt a single-

contract approach in carrying out the Mass Transit Railway project.

This was announced by the Financial Secretary, the Hon. C.P.

Haddon-Cave, in the Legislative Council today.

In making the announcement, the Financial Secretary said:

"Four weeks ago, when replying to a question from my honourable

Friend Mr. James Wu, I said in this Council that the Mass Transit Steering

Group was about to submit recommendations to Executive Council on a series

of important and difficult questions concerning the Mass Transit Railway:

including, first and foremost, the question whether the project should

be dealt with on a single-contract or multi-contract basis.

"I can now report to honourable Members that, having considered

the Steering Group's recommendations, the Government has decided in

principle to adopt a single-contract approach: that is to say, to award

a contract to one consortium, selected by competitive negotiation, for

the complete construction and equipment of the first four stages of the

Mass Transit Railway. I emphasise the words 'in principle' because an

acceptable contract has yet to be negotiated and concluded. And, to this

end, the government has decided that the Steering Group should forthwith

enter into further exchanges with the four consortia who have put forward

single-contract proposals, with a view to opening up actual negotiations

with them and, ultimately, to selecting one of them for the contract.

/"Now that