TNAG-0424-FCO40-470-Construction-of-an-underground-railway-system-in-Hong-Kong-1973 — Page 266

0003160 G.F. 316

20

as follows:

(a)

SECRET

4

Original estimates provided by the Group

Add costs of:

Chater Station and line to Admiralty

(figure for civil works provided by the British Group; figure for E & M assumed by MTSG)

231

HK$ mn

4,047

Demolition and underpinning (figure

provided by the British Group)

10

Cooling water supply and disposal for

station air-conditioning

25

Change of construction method to suit

limited working room (figure

provided by the British Group)

47

Miscellaneous items

18

331

4,378

P

Add contingencies (15% for civil works

and 7.5% for E & M

483

4,861

Less original provisions made by the

British Group for:

Contingencies

432

Project management, insurance, etc.

241

673

4,188

Add:

Exchange rate adjustments (cf.

paragraph 6 above and paragraph 22 below)

(-)292

Provision for unforeseen

circumstances

500

Project management, insurance, etc.

308

Cost escalation from mid-1972 to

date of completion of construction (at 8% p.a.)

1,785

2,301

Assumed contract price

6,489

The column headings used in the cash-flow table are explained

the Corporation's own cost consists of:

(i)

land acquisition costs, estimated at $200 mn at mid-1973 prices, less possible resales of surplus land estimated at $50 mn at mid-1973 prices;

SECRET

/.... (ii)