XN000022-1994-05-24 — Page 5

RANGE OF % REDUCTION

TUESDAY, MAY 24, 1994

REDUCTION IN MONEY TERMS

EXTENSION OF

CONCESSIONARY FARE

SCHEME FOR ELDERLY

PASSENGERS

33%

45%

$1.4

—

$9

EXTENSION OF

CONCESSIONARY FARE

SCHEME FOR CHILDREN

33%

-

40%

$1.5

―

$6

SATURDAY MORNING

FARE REDUCTIONS

12%

―

- 67%

$0.7

—

$9

7.6

ALSO, FARES FOR VEHICULAR SERVICES WILL GO UP BY AN AVERAGE OF PER CENT AND FREIGHT SERVICE BY 20 PER CENT. THE NON-PEAK HOUR DISCOUNTED FARE FOR NEW TOWN HOVERFERRY SERVICES WILL BE WITHDRAWN.

THE APPROVED RATE OF INCREASE IS LOWER THAN THE ESTIMATED INFLATION RATE OF 17 PER CENT FROM JULY 1992 TO JULY 1994. OVERALL ABOUT 77 PER CENT OF THE TOTAL PASSENGERS WILL HAVE THEIR FARES INCREASED BY 15 PER CENT AND BELOW.

THE NEW FARES WILL ONLY INCREASE THE CONSUMER PRICE INDEX (A) MARGINALLY BY 0.01 PER CENT.

A GOVERNMENT SPOKESMAN SAID EVEN WITH THE APPROVED FARE INCREASE, THE COMPANY WOULD NOT BE MAKING ANY PROFIT THIS YEAR LARGELY BECAUSE OF DECREASING PATRONAGE, INCREASING OPERATING COST AND STRONGER COMPETITION FROM OTHER MODES OF PUBLIC TRANSPORT.

THE FARE INCREASE WILL ONLY BE ABLE TO REDUCE THE ESTIMATED

LOSS.

$742 MILLION WORKS CONTRACT AWARDED

*

THE DIRECTOR OF WATER SUPPLIES, MR HU (TUESDAY) SIGNED A $742-MILLION CONTRACT WITH THE FOR THE CONSTRUCTION OF MA ON SHAN TREATMENT WORKS,

THIS IS THE LARGEST

SUPPLIES DEPARTMENT.

MAN-SHIU, TODAY AOKI CORPORATION

CONTRACT EVER AWARDED BY THE WATER

UPON COMPLETION BY THE END OF 1996, THE MA ON SHAN TREATMENT WORKS WILL HAVE A PUMPING STATION AND A DAILY OUTPUT OF 227,000 CUBIC METRES AND A PRIMARY SERVICE RESERVOIR WITH A STORAGE CAPACITY OF 40,000 CUBIC METRES.

IT CAN MEET THE DEMAND OF THE GROWING POPULATION IN MA ON SHAN AS WELL AS THE EASTERN AND WESTERN AREAS OF SHA TIN FOR MORE FRESH WATER SUPPLY.

/ANOTHER CONTRACT