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ExCo approves new franchise for Citybus
The Governor-in-Council today (Tuesday) approved the terms of a new franchise for Citybus Limited which will confer upon the company the right to operate a public bus service for 10 years from September 1, 1996.
A government spokesman said the recommendation of granting a longer franchise to Citybus would allow the company to plan ahead and to have more time to recover its investment and to secure financing in an easier manner.
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"Of course, the company's performance is also an important consideration," he
The spokesman pointed out that a number of changes and several new provisions were incorporated into the new franchise. These include a new requirement for a mid-term review.
"The mid-term review is to be conducted after the fourth year of the new franchise. Based on the results of such a review, the Governor-in-Council may, if the need arises, and with the consent of Citybus, amend the terms of the franchise," he said.
The spokesman emphasised that the new provisions would strengthen the Administration's role in monitoring Citybus' services.
"Under the new franchise, Citybus's network would be similar to the one it currently operates," he noted.
The spokesman added that since this was a major franchise straddling 1997, the Chinese side would be consulted.
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