XN000022-1996-06-27 — Page 61

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Following completion of the technical studies, and when Government has decided to proceed with the project, KCRC will need to commission more consultancy contracts for detailed design and construction supervision work.

On the question of Chinese consultation referred to by the Honourable Member, Government has kept the Chinese side of the JLG informed of developments of the Western Corridor Railway project. We have also undertaken to consult them before any decision that would commit the future Special Administrative Region Government (SARG) is taken. I would emphasise that the technical studies are part and parcel of the planning process. They are preparatory work which do not on their own commit the Government or indeed the future SARG to going ahead with the project.

As regards part (b) of the question, the consultancy studies completed by KCRC so far have led to their submission of the Full Proposal on the project to Government. This Proposal:

(a)

contains an outline scheme for the railway, preliminary cost estimate and financial analysis;

(b)

provides a preliminary assessment of key legal, land, transportation, engineering and environmental issues that need to be further addressed;

(c)

sets out KCRC's views on the engineering feasibility and financial viability of the project; and

(d)

provides a basis for discussion between KCRC and Government, and for further technical work to be carried out.

KCRC have, since submission of their proposal, been making preparations for the technical studies, and have called for tender for 11 consultancy contracts. Shortlisted tenderers have been identified but, as I have mentioned earlier, no contracts have been awarded.

In summary, KCRC have been carrying out studies since 1991 on or related to the WCR project, all in full compliance with the obligations and powers laid down in the KCRC Ordinance. The Corporation are not required to specifically notify, or obtain agreement from, Government before undertaking the consultancy studies and design work. Nevertheless, Government is in close liaison with the Corporation over the various aspects of their proposal and has therefore been kept informed of these studies.

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