XN000022-1993-09-02 — Page 3

THURSDAY, SEPTEMBER 2, 1993

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WESTERN HARBOUR CROSSING PROJECT AGREEMENT AND CONSTRUCTION CONTRACT SIGNED

* * * * *

CROSSING

THE PROJECT AGREEMENT FOR THE WESTERN HARBOUR FRANCHISE WAS SIGNED TODAY (THURSDAY) BY THE GOVERNMENT AND THE FRANCHISEE, WESTERN HARBOUR TUNNEL COMPANY LIMITED.

THE GOVERNMENT AND THE FRANCHISEE ALSO SIGNED A DOCUMENT UNDER WHICH THE FRANCHISEE'S SHAREHOLDERS GUARANTEE THAT THEY WILL COMPLETE THE PROJECT WITHIN 48 MONTHS, AND THAT THEY WILL BEAR ANY COST OVERRUNS.

IN A SEPARATE CEREMONY, THE FRANCHISEE SIGNED A $5.7 BILLION THE CONTRACT WITH ITS CONTRACTOR, NISHIMATSU KUMAGAI JOINT VENTURE. CONTRACTOR TOOK POSSESSION OF THE SITE A MONTH AGO AND HAS STARTED PREPARATORY WORK.

THE SECRETARY FOR TRANSPORT, MR K Y YEUNG, SAID: "THIS IS AN IMPORTANT STEP FORWARD IN THE DEVELOPMENT OF HONG KONG'S TRANSPORT INFRASTRUCTURE."

"THE WESTERN HARBOUR CROSSING WILL PROVIDE HONG KONG ESSENTIAL THIRD HARBOUR TUNNEL, OFFERING MUCH-NEEDED RELIEF EXISTING TUNNELS. IT WILL ALSO FORM A CRUCIAL PART OF THE FROM HONG KONG ISLAND TO THE NEW AIRPORT AT CHEK LAP KOK.

WITH AN

TO OUR HIGHWAYS

"THE PROJECT AGREEMENT AND THE GUARANTEE AGREEMENT ARE RESULTS THEY OF TOUGH NEGOTIATIONS BETWEEN THE GOVERNMENT AND THE CONSORTIUM. HAVE LED TO AN AGREEMENT THAT IS FAIR AND REASONABLE FOR BOTH PARTIES AND, MOST IMPORTANTLY, FOR THE PUBLIC.

"THE TERMS OF THE FRANCHISE, AND THE GUARANTEES ON COMPLETION AND COST OVERRUNS, PROTECT THE PUBLIC INTEREST WITH A STABLE TOLL REGIME. THEY ALSO PROVIDE PRIVATE SECTOR INVESTORS WITH THE NECESSARY CONTINUITY AND STABILITY.

"THE

TO

FRANCHISEE IS COMMITTED TO COMPLETION WITHIN 48 MONTHS, AND I AM CONFIDENT THAT THE CONTRACTOR WILL DO EVERYTHING POSSIBLE ENABLE THE TUNNEL TO BE OPENED ON SCHEDULE IN MID-1997

•

וו

MANAGING DIRECTOR OF THE WESTERN HARBOUR TUNNEL COMPANY LIMITED, MR

THE LONG GERRY HIGGINSON, SAID: "WE ARE DELIGHTED THAT TIME SPENT IN NEGOTIATING THE TERMS OF THIS CONTRACT HAS REACHED FRUITION BY THE PROJECT AGREEMENT TODAY BEING SIGNED BY THE COMPANY AND THE HONG KONG GOVERNMENT.

TR

"THE COMPANY IS CONFIDENT THAT IT WILL BE ABLE TO CONSTRUCT THE TUNNEL WITHIN THE 48-MONTH PERIOD PROVIDED FOR IN THE PROJECT AGREEMENT, AND THAT THE NEW TUNNEL WILL FORM AN ESSENTIAL PART OF

OF WHICH HONG KONG WILL BE PROUD OF FOR MANY YEARS INFRASTRUCTURE

THE то

T

COME.

A GOVERNMENT SPOKESMAN SAID: "THE AWARD OF THE CONSTRUCTION

OF CONTRACT FOR THE WESTERN HARBOUR CROSSING BRINGS TO A TOTAL

THE VALUE OF CONTRACTS AWARDED ON THE AIRPORT CORE BILLION (ACP) BY THE GOVERNMENT, THE PROVISIONAL AIRPORT AUTHORITY (PAA), THE WESTERN HARBOUR CROSSING (WHC) FRANCHISEE."

$44

PROGRAMME

AND

"THAT AMOUNTS

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