XN000022-1996-01-17 — Page 42

(a)

(b)

(c)

(d)

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how much has been earmarked for land resumption and what is the breakdown of the estimate on the construction cost;

whether consultants will be invited locally to submit tenders for the investigation and design work in accordance with the tendering procedures adopted by the Government's Works Departments; if not, why not;

what criteria will be adopted by the KCRC for selecting professional consultants for the Western Corridor Railway project; and whether the consultants' local design experience in the environmental, building regulations and fire safety aspects will be taken into consideration in the selection process; if not, why not; and

whether non-salaried directors of the KCRC will be involved in the selection of consultants for the project?

Reply:

Mr President,

In January 1995, following the announcement of the Railway Development Strategy (RDS), Government invited the Kowloon-Canton Railway Corporation (KCRC) to submit a proposal for building a new railway running from the border to West Kowloon, through the western part of the territory, i.e. the Western Corridor Railway (WCR). KCRC submitted its formal proposal to Government in November 1995. This outlines the Corporation's scheme for the WCR project and serves as the basis for detailed discussions between Government and the Corporations and on which the Corporation intends to carry out further in-depth planning and design work.

The cost estimate of $75 billion given by KCRC in its project proposal is in Money of the Day (MOD) terms. The relevant corresponding figure in the RDS is about $53 billion. It has been clearly explained that the estimates given in the RDS were only rough indications of cost. They were based on a preliminary assessment without the benefit of a more detailed study like the one that the KCRC has since undertaken. Furthermore, the KCRC's cost estimate has allowed for changes in the scope in the project, such as the extension to Tuen Mun Town Centre, as well as project reserves and financing costs, which were not included in the RDS estimates.