SUMMARY
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The proposed modified initial system omits the Lai Chi Kok branch and eliminates all expenditure not strictly necessary for the resultant simpler system, and expenditure previously included in the initial system as preliminary to future extensions. The modified system can be extended in the future to the full extent contemplated in the further studies carried out in 1970, and initially provides an attractive, safe and reliable system connecting the areas of dense population in Central and Kowloon most likely to cause serious transportation difficulties in the future.
The modified initial system has been further developed and refined over the last few weeks. The estimated cost has been reduced by a further 10% to $4,664M in 1974 values, or to an estimated completed cost of $5,850M after allowing for escalation. The construction period has been reduced by six months, allowing full operation in mid 1980 and partial operation six months earlier.
The modified system provides 72% of the total revenue contemplated for the initial system and further consideration has confirmed as realistic a revenue increase of 25% over that included in first estimates for the modified system. The tariff structure for this purpose is based in 1974 terms upon $1 minimum plus 50¢ for each subsequent fare stage.
The withdrawal of the Japanese Consortium has effectively resulted in 12 months delay. Any further delay following the announcement of this withdrawal will have a serious and damaging effect upon the confidence in the Mass Transit Railway of other potential contractors, financial sources, and upon the ability of the Corporation to recruit staff of the necessary calibre to supervise the building of the railway. Accordingly, it is strongly recommended that the announcement of plans for proceeding with the alternative modified system be made simultaneously with the announcement of withdrawal by the Japanese Consortium.
No comments yet.
Private notes are available after approval.