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Contract for MTRC refurbishing train cars

Following is a question by the Hon Lau Chin-shek and a written reply by the Secretary for Transport, Mr Gordon Siu, in the Legislative Council today (Wednesday):

Question:

It is learnt that the Mass Transit Railway Corporation will spend more than a billion dollars to refurbish some 700 of its train cars. In this connection, does the Government know -

Reply:

(a)

(b)

Mr President,

whether the contract for this project will be awarded through open tender; if so, when the tendering exercise will be conducted; and

of any specific measures in place to ensure that this project is cost- effective and will not lead to fare increases in the future?

The Mass Transit Railway Corporation intends to award a contract for this project through public tender. The Corporation is now preparing the tender documents and expects to issue them early next year to a number of international companies which have been assessed and qualified as being suitable to carry out this project. The contract will be awarded in the last quarter of 1997. The target completion date for the whole project is 2001.

The costs and benefits of the project have been rigorously scrutinized by the Corporation and the capital expenditure required has been included in the Corporation's long-term financial forecasts. Since the capital expenditure will be spread over many years, it will not have any direct impact on fares.

End