XN000022-1977-07-19 — Page 2

TUESDAY, JULY 19, 1977

EXTENSION OF THE MODIFIED INITIAL SYSTEM OF THE MASS TRANSIT RAILWAY TO TSUEN WAN

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A GOVERNMENT SPOKESMAN SAID TODAY THE GOVERNOR-IN-COUNCIL THIS MORNING APPROVED A PROPOSAL BY THE BOARD OF THE MASS TRANSIT RAILWAY CORPORATION TO EXTEND THE MODIFIED INITIAL SYSTEM (MIS) OF THE MASS TRANSIT RAILWAY FROM PRINCE EDWARD STATION, MONGKOK, TO TSUEN WAN. THE LENGTH OF THE EXTENDED RAILWAY WILL THUS BE 26.3 KILOMETRES COMPARED WITH THE LENGTH OF THE MIS OF 15.6 KILOMETRES.

THE PLANNED EXTENSION FROM PRINCE EDWARD STATION WILL RUN THROUGH SHAM SHUI PO, SO UK, CHEUNG SHA WAN, LAI CHI KOK ONWARDS THROUGH KWAI CHUNG TO TSUEN WAN. THE EXTENSION WILL INCLUDE 11 NEW STATIONS AND THUS THE ENLARGED SYSTEM WILL HAVE 26 IN ALL.

THE MASS TRANSIT RAILWAY CORPORATION PLANS TO CONSTRUCT THE EXTENSION BETWEEN 1978 AND THE END OF 1982 AND THE ESTIMATED COST, INCLUDING AN ESCALATION FACTOR FOR INFLATION, BUT EXCLUDING INTEREST AND FINANCE CHARGES INCURRED DURING THE CONSTRUCTION PERIOD AND CROWN LAND PREMIA, WILL BE

$4,100 MILLION, EXCLUDING THE ESCALATION FACTOR, THE EXTENSION IS ESTIMATED TO COST ABOUT $2,900 MILLION AT 1975 PRICES, OR ABOUT TWO-THIRDS OF THE COST OF THE MODIFIED INITIAL SYSTEM.

THE CORPORATION PLANS TO FINANCE THE COST OF THE NEW EXTENSION ENTIRELY FROM LOANS. PUBLIC FUNDS WILL NOT BE INVOLVED AT ALL, ALTHOUGH THE GOVERNMENT WILL TAKE A FURTHER SMALL ADDITIONAL EQUITY INTEREST IN THE CORPORATION IN EXCHANGE FOR CROWN LAND PREMIA- AND, TO ASSIST THE CORPORATION IN THE EARLY YEARS OF OPERATION, EQUITY WILL BE ACCEPTED FOR PAYMENT OF RATES.

THE CORPORATION BELIEVES THAT ITS ESTIMATES OF COST ARE REALISTIC AND ITS FINANCIAL PLANNING PROVIDES FOR ALL LOANS FOR THE EXTENDED SYSTEM TO BE REPAID BY 1992.

IT IS ESTIMATED THAT THE MODIFIED INITIAL SYSTEM PLUS THE EXTENSION TO TSUEN WAN COULD CARRY ABOUT 1.8 MILLION PASSENGERS DAILY BY THE MID 1980'S COMPARED WITH PREVIOUS ESTIMATES OF ABOUT 1 MILLION PASSENGERS FOR THE MODIFIED INITIAL SYSTEM ALONE.

THE EXTENTION OF THE M.T.R. TO TSUEN WAN UNDERLINES THE IMPORTANCE THE GOVERNMENT ATTACHES TO MEETING THE GROWING TRANSPORT NEEDS OF THE LARGE COMMUNITIES GROWING UP IN THE

THE TSUEN WAN, KWAI CHUNG, TSING YI AND TUEN MUN AREAS. IMPORTANCE OF THIS CORRIDOR WAS SHOWN IN THE COMPREHENSIVE TRANSPORT STUDY COMPLETED IN 1976, WHICH SPECIFICALLY ESTABLISHED THE NEED FOR AN EXTENSION OF THE RAILWAY TO TSUEN WAN.

THE CONSTRUCTION OF THE EXTENSION AND, OF COURSE, THE MODIFIED INITIAL SYSTEM ITSELF, WILL ENABLE THE RAILWAY TO CARRY LARGE NUMBERS OF PEOPLE RAPIDLY THROUGH SOME OF THE MOST CROWDED PARTS OF HONG KONG, AND THE CONSEQUENT ALLEVIATION OF CONGESTION ON THE ROADS WILL BENEFIT THE ENTIRE POPULATION.

THE MODIFIED