XN000022-1992-06-02 — Page 3

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TUESDAY, JUNE 2, 1992

THE SPOKESMAN SAID: "IN DETERMINING THE SIZE AND COMPOSITION OF CMB'S NETWORK UNDER THE NEW FRANCHISE, THE GOVERNMENT HAS TAKEN FULL ACCOUNT OF THE NEED TO GIVE CMB A BALANCED AND FINANCIALLY VIABLE PACKAGE OF ROUTES, INCLUDING A DETAILED EXAMINATION OF CMB'S ACTUAL REVENUE AND COST DATA, THE PROFITABILITY OF EACH ROUTE, THE FAVOURABLE IMPACT OF FUEL TAX EXEMPTION, POSSIBLE SAVINGS IN OVERHEAD COSTS THE REDUCTION OF MAINTENANCE COSTS BROUGHT ABOUT BY THE RETIREMENT OF OLD BUSES.

AND

"THE MAIN TERMS OF THE NEW FRANCHISE, NAMELY A REDUCED NETWORK AND THE ABOLITION OF THE PROFIT CONTROL SCHEME, HAVE BEEN ACCEPTED BY THE CMB, THE SPOKESMAN SAID.

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"HOWEVER, CMB HAS EXPRESSED

CERTAIN RESERVATIONS ON THE PACKAGING OF ROUTES IN THEIR WRITTEN REPRESENTATIONS TO THE EXECUTIVE COUNCIL. THESE HAVE BEEN TAKEN FULLY INTO ACCOUNT IN THE GOVERNOR COUNCIL'S DECISION.

"CMB HAS BEEN ASKED TO CONFIRM ACCEPTANCE BEFORE JULY 2.

IN

THE SPOKESMAN ALSO SAID THE ROUTES TO BE TENDERED OUT AS A PACKAGE COMPRISED TWO CROSS-HARBOUR ROUTES, 16 ROUTES FOR SOUTHERN DISTRICT, FIVE ROUTES FOR CENTRAL AND WESTERN AND THREE ROUTES FOR WAN CHAI.

"THE PROPOSED PACKAGE SHOULD BE ATTRACTIVE TO POTENTIAL BIDDERS, HAVING REGARD TO PROFITABILITY, OPPORTUNITIES FOR SERVICE EXPANSION AND PRODUCTIVITY IMPROVEMENTS AND THE LEVEL OF INITIAL INVESTMENT, THE SPOKESMAN ADDED.

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A GAZETTE NOTICE WILL BE ISSUED ON SATURDAY (JUNE 6) TO INVITE TENDERS. THE CLOSING DATE WILL BE JULY 18.

IT IS EXPECTED THAT THE SUCCESSFUL TENDERER WILL BE ANNOUNCED IN SEPTEMBER TO PROVIDE ENOUGH TIME FOR LINING UP THE NECESSARY BUSES AND SUPPORT FACILITIES FOR THE OPERATION TO COMMENCE IN SEPTEMBER 1993.

CONTRACT AWARD FOR FIRST SECTION OF NORTH LANTAU EXPRESSWAY

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THE GOVERNMENT HAS AWARDED A $3,503 MILLION FIXED PRICE LUMP SUM CONTRACT FOR THE CONSTRUCTION OF THE TAI HO SECTION OF THE NORTH LANTAU EXPRESSWAY TO LANTAU EXPRESSWAY JOINT VENTURE, A CONSORTIUM OF SIX COMPANIES FROM CHINA, NEW ZEALAND, AUSTRALIA, THE UNITED KINGDOM AND HONG KONG.

THE TAI HO SECTION OF THE NORTH LANTAU EXPRESSWAY WILL BE MAINLY BUILT ON RECLAIMED LAND ALONG THE LANTAU COAST.

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