TNAG-1512-FCO40-2070-Kowloon-Canton-highway-and-Kowloon-Canton-Railway-Corporatio-1986 — Page 94

C.S 166

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ACC (83) 125

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Consortium 'A'

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This proposal was basically unaltered from the original submission to KWG in 1982. It related only to Stage 1 of the company's proposed network (Yuen Long

Long to Tuen Mun Pier Head, Tai Hing, Shan King and Yau 01) and was estimated to cost about $1.2 billion at October 1982 prices and August 1983 exchange rates for the 17 kilometres of State 1 route, or about $70 million per route kilometre. Commissioning could be secured within 36 months of notice

proceed. Loans would be raised in the consortium's country of origin, but would require Hong Kong Government guarantees. Routes and operational details were not stated, and no account was taken of the role of buses. No assumptions were made about fare levels. This consortium has suggested an alternative one-route system connecting Yuen Long, Tuen Mun and Tsuen Wan as being

being potentially more viable. On the basis of its original submission the cost appears high (at or over $2.5 billion at present prices) and although the consortium tentatively concludes that the scheme would be viable, break-even would probably not occur in the first ten or even fifteen years of operation. It is now reworking its proposal to account for the new patronage data and the total kilometre network. Costs could possibly be trimmed by designing a larger and more cost-effective vehicle and reducing overseas labour content.

The consortium assumes

that the owner of the LRT system would be the KCRC.

Consortium 'B'

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meet

34

This proposal was specified to meet the Secretary for Transport's requirements and covered most of the "full' network. It would be commissioned in stages between 1987 and 1993. The consortium proposed its own service pattern, but this could be revised

the Government's specification. The estimated cost of the network at July 1983 prices would be $1.2 billion for some 32.5 kilometres of route, or about $37 million per kilometre. Fares would be between $1 and $2 at 1983 levels. Patronage estimates were made for both rail and bus services, but were too high in the original submission: these are also currently being revised, as are the financial projections. The consortium estimates that each phase would be amortised over 102 months, meaning that break-even would finally occur in 2001. Loans would be provided through the consortium's financial partners to cover all costs associated with the project. The owner of the system is assumed to be the Government or the KCRC, and other guarantees are not sought.

Consortium 'C'

15

This consortium has

I

It

presented & robust case. proposes to build the entire network for $1.07 billion at September 1982 price levels and exchange rates, or a unit cost

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