XN000022-1987-02-27 — Page 3

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FRIDAY, FEBRUARY 27, 1987

NEW HARBOUR CROSSING PROJECT A VOTE OF CONFIDENCE'

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THE EASTERN HARBOUR CROSSING (EHC) PROJECT REPRESENTS SUBSTANTIAL VOTE OF CONFIDENCE OF THE PRIVATE SECTOR IN THE FUTURE PROSPERITY OF HONG KONG, THE FINANCIAL SECRETARY, MR PIERS JACOBS, SAID TODAY (FRIDAY).

SPEAKING AT THE SIGNING CEREMONY FOR THE FINANCING ARRANGEMENTS FOR THE PROJECT, HE SAID THE CONSTRUCTION COST OF THE EHC ESTIMATED AT HK$3.4 BILLION WOULD BE PROVIDED PRINCIPALLY BY THE PRIVATE SECTOR.

+THE FINANCING WILL BE THROUGH EQUITY INVESTMENT OF $1.1 BILLION, THE DOCUMENTS FOR WHICH HAVE ALREADY BEEN SIGNED, AND THROUGH A DEBT FINANCING PACKAGE OF UP TO $3.3 BILLION THE DOCUMENTS FOR WHICH ARE BEING SIGNED TODAY, MR JACOBS SAID.

+A TOTAL OF 50 FINANCIAL INSTITUTIONS FROM A NUMBER OF COUNTRIES WILL PARTICIPATE IN PROVIDING THE CREDIT FACILITIES, AND THE REPAYMENT PROVISIONS EXTEND TO THE YEAR 2007.+

NO FINANCIAL GUARANTEES HAD BEEN PROVIDED BY ANY GOVERNMENT AND THERE WAS NO FINANCIAL COMMITMENT ON THE PART OF THE HONG KONG GOVERNMENT, HE ADDED.

ALTHOUGH THE GOVERNMENT HAD NOT PROVIDED ANY FINANCIAL BACKING FOR THE PROJECT, MR JACOBS SAID IT HAD BEEN CLOSELY INVOLVED IN THE PLANNING AND HAD GRANTED THE LAND AND OPERATING FRANCHISES AT NIL PREMIUM.

+THIS PARTNERSHIP BETWEEN GOVERNMENT AND THE PRIVATE SECTOR, WHICH WILL RESULT IN THE CONSTRUCTION OF A NEW HARBOUR CROSSING AT NO COST TO THE TAXPAYER, IS A PRIME EXAMPLE OF WHAT CAN BE ACHIEVED THROUGH FREE ENTERPRISE AND INITIATIVE, HE SAID.

CONSISTING OF AN IMMERSED TUBE OF ALMOST TWO KILOMETRES IN LENGTH CONTAINING BOTH ROAD AND RAIL TUNNELS, THE EHC WILL BE LINKED TO THE ISLAND EASTERN CORRIDOR ON HONG KONG ISLAND AND TO INTERCHANGES IN KOWLOON CONNECTING IT WITH MAJOR ROUTES LEADING TO JUNK BAY AND LATER ON TO SHA TIN,

THE RAIL ELEMENT WOULD LINK THE MASS TRANSIT RAILWAY STATIONS AT KWUN TONG AND QUARRY BAY, INVOLVING THE CONSTRUCTION OF A NEW STATION AT LAM TIN, MR JACOBS SAID.

+UPON ITS COMPLETION THE PROJECT WILL BRING IMMEDIATE BENEFIT BY RELIEVING CONGESTION AT THE CROSS HARBOUR TUNNEL AND ON THE MASS TRANSIT RAILWAY; IN THE LONGER TERM, IT WILL PROMOTE THE DEVELOPMENT OF JUNK BAY, NORTHEAST KOWLOON AND THE EASTERN PART OF HONG KONG ISLAND, HÉ ADDED.

/CONSTRUCTED BY