"
1
-A big door
as the Govt
decides to go
for the tube
AN HISTORIC decision was announced by the Govern- ment yesterday to build a $10,000 million, 32-mile-long underground railway and the Colony hailed it immediately as a dramatic political, social and economic step forward.
Within hours of the announcement by Financial Secretary Philip Haddon-Cave in the Legislative Council, various sections of the community smiled with satisfaction, including those who will be Unancially affected by it.
Price
A hushed agembly Bened as the Limone ind. Secretary made a. 15 minite speech When it ended, the sombre mood persisted; there was no appłanse.
The said a top-level committee had concluded that it should be possible to raise the massive capital needed for the tube from a combination of sources, it would be on terms which, by present indications, are likely to be acceptable.
It was, he said, financially viable. "The decision in principle taken last June... to proceed with the construction of the tull mass transit railway should HOW be publicly confirmed".
No details of the project or on which tenders would be accepted were announced, but Mr Haddon-Cave said the Government had not discarded the idea of building the railway through several contracts with suppliers from different countries.
This, he said, was aimed at obtaining: the best prices available in any country,
Further consultations, he added, would be held with the consortia shortly to obtain "the information necessary for a decision to be reached."
A public corporation, established under a special ordinance, will be set up to operate the tube, independent of the Government, although it will, at least initially, be owned entirely by the Government.
"The capital structure of the corporation will have a very high loan gearing but the Government intends to take an equity position in the form of a cash subscription, land and expenditure so for charged of public revenue.
"Later on, the public might well be invited to subscribe further equity capital”.
The Government frad decided to procved immediately with construction of the First Tour of the nine stages of the full systent,
"to this end preparatory engineering desien work, mil Investisitions, and so on are in hand".
In response to a peneral invitation issued by the Steering
Group last July, no fewer than 21 companies and consortia, comprising financial, engineering and other interests in Hongkong and seven major countries submitted preliminary the proposals for financing project, he said. Thirty others had expressed interest.
On whether the Government would accept a single-contract or a multi-contract approach, he said both were equally feasible, with advantages
and disadvantages finely balanced,
"A final decision on which of these two approaches to adopt cannot now be made with confidence because the information available on the prices and credit terms........
is as yet inalficient”.
Virtually every one on the street, PARDONIE Ted by Hongkong Standard reporters, welcomed. Hos tube deckion as a
ol the Government's confidence in Homkam's Future and, of course, a big step towards solving some of the Colony's chronic traffic problems
HONG KONG, STANDARD
THU, 15 FEB 23
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