TNAG-0322-FCO40-358-Construction-of-underground-railway-system-in-Hong-Kong-1971 — Page 53

CONFIDENTIAL

6 -

Initial System

Preferred

System

only

$ M

3 M

1976 (1st year of operation)

1979 (completion of Initial System)

12.8

12.8

166.6

166.6

1986 (completion of Freferred System)

208.9

490.4

1999 (20 years after completion of

Initial System)

253.4

594.2

2006 (20 years after completion of

Preferred System)

646.7

For both systems, the revenue has been calcula ted assuming that the number of passengers travelling after 1986 will increase by 2% per year.

OPERATING EXPENSES

26.

On the basis of the recommended service frequency given in Table 6.2, the Consultants have calculated annual operating expenses to be $18.2 M in 1976, rising to $46.6 M in 1980 and to 107.3 M in 1986. Operating Expenses comprise Running Costs and Capital Costs. Running Costs have been cal- culated on the frequency of the service provided, while Capital Costs include Depreciation of Plant & Equipment and Buildings Maintenance. Total Operating Expenses have been assumed to increase by $1 million per year after 1980 for the Initial System alono, and by $2 million per year after 1986 for the Preferred System.

27.

The Consultants' calculations make no provision for the cost of financing or for repayment of capital (other than very small sums allowed as depreciation of plant and equipment).

CONFIDENTIAL