2
On the toll structure, the Secretary for Transport said in the negotiations with the tenderer, one of the objectives of the Government was to secure a low and stable
toll regime.
"To achieve this, a toll adjustment mechanism was negotiated to allow the franchisee to raise the necessary funds to finance the project and at the same time earn a reasonable but not excessive return.
"For instance, the opening tolls will be competitive - $15 for private cars. And there are only three anticipated toll increases in the 30-year life of the franchise.
"In case the franchisee's net revenue exceeds the maximum permissible level, the excess will be channelled into a Toll Stability Fund which can be used for deferring future toll increases..
added.
"The Fund will be deposited with and managed solely by the Government," he
Mr Barma said under the proposed franchise terms, the franchisee will make public financial and operational information as reasonably requested by the Government.
He explained that privatisation under a BOT arrangement had proved to be an effective way of involving the private sector in transport infrastructure investment and operation.
"It makes use of the private sector's experience and enables the Government to deploy resources otherwise needed for this essential infrastructure to other important projects not suitable for privatisation," he said.
He said the Executive Council would be consulted shortly on the draft bill on the Tai Lam Tunnel and Yuen Long Approach Road. The bill will then be introduced into the Legislative Council.
The Route 3 (CPS) Company comprises Sun Hung Kai Properties Limited, Bank of China Group Investment Limited, China Resources (Holdings) Company Limited and the China Travel Service (Holdings) HK Limited.
End/Friday, February 17, 1995
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