TNAG-0564-FCO40-659-Construction-of-an-underground-railway-system-in-Hong-Kong-1975 — Page 32

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

CONFIDENTIAL #

機密

ANNEX C TO XCC(75)55

Revised Estimate of Total Project Cost

The table below shows the revised estimate of the total project cost compared with the estimate (at October 1974 prices) which was made in January. Annex D of memorandum XCS(75)1 estimated that the cost of the project, after allowance for escalation at 7% p.a. from mid-1974, would be $5,850m. The assumptions for the cash flow calculation shown at Annex D to this memorandum produce an equivalent revised estimate of the project cost of $5,200m., after allowing for the same figure of 7% p.a. escalation, but from mid--1975 rather than mid-1974. Although this is a very substantial reduction from $5,850m. it is, of course, offset by reductions in revenue. If, however, the original January assumption were maintained, that the average inflation rate over the life of the project would be 7% p.a. from mid-1974 to completion, then the estimated project cost would be 35,600m., a reduction of $250m. from the January estimate.;.

$million

Jan 75 Estimate (Oct 1974 prices)

Revised Estimate (July 1975 prices)

25 Civil Contracts

$175.69

2901.10

10 E & Contracts

745.00

793.69

Total

3920.69

3694.79

Other Costs *

744.00

792.00

Total without

escalation

4664.69

4486.79

Total

plus 7% p.a. from mid-74

5850

5600

plus 7 p.a.

from mid-75

5200

*Notes:- (1)

Other costs include survey and site investigation, utility and traffic diversions, land, staff and other administration costs, consultants fees.

G.F. 323

CONFIDENTIAL

機密

12

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