TNAG-1060-FCO40-1310-Mass-Transit-Railway-in-Hong-Kong-1981 — Page 14

MTR as a Whole

Island Line Alone

(a)

(MIS/TWE/Island Line)

(b)

(a)

(b)

Year in which operating cash 1995

1988

1987

1986

flow becomes positive

Maximum debt ($ billion)

16

4.3

22

14.5

Year of maximum debt

1994

1987

1986

1985

Payback year

2003

1994

1997

1993

Notes:

(a) · position before allowing for the impact of profits from property

development or any drawdown of additional Government equity to meet expenditure not covered by ECGD-type facilities.

(b)

-

position after allowing for the impact of profits from property development and the drawdown of additional Government equity required to meet expenditure not covered by ECGD-type facilities.

(7) Land Implications of the Island Line

30

Plans for the Island Line include constructing the concourses of the new stations, generally below ground level, in off-street sites adjacent to the railway line. Locating concourses in this manner, combined with the use of bored tunnelling, minimises disruption of the major thoroughfares. The plans also call for entrances, ventilation shafts and other railway structures to be located off-street, where possible.

31

Land acquisition and clearance necessary for the construction of the railway would normally be undertaken by the Government, but certain private sites would be acquired directly by the MTRC for the incorporation of railway structures and redevelopment. Other private sites would be the subject of negotiations by either the MTRC or the Government to ensure the incorporation on them of the required railway structures by private developers. It is foreseen that certain sites occupied by pre -war buildings which are liable to become dangerous because of MTR construction might have to be acquired and cleared by the Government.

32

From Table 3 it will be seen that the total cost of land acquisition by the Government, compensation for pecuniary losses and route protection measures for the Island Line is estimated at $997 million (at 1980 values). However, it would be the intention that, wherever possible, the owners of

CONFIDENTIAL