TNAG-1513-FCO40-2071-Hong-Kong-Mass-Transit-Railway-Corporation-1986 — Page 12

With the Government's cash injection of

$1,500 million on 31 December 1985, the Corporation's issued share capital totalled $6,956 million, compared

with $5,212 million a year earlier. At that date the debt to equity ratio improved to 4.9:1 from 6.4:1 in 1984. The Corporation is confident that the capital restructuring programme approved by the Finance Committee, of which the first part has been implemented, will enable the Corporation to service and to repay

steadily its large debts.

The final section of the Island Line from

Admiralty to Sheung Wan will open on 23 May 1986, some four months ahead of schedule at a cost expected to be more than $500 million below budget. This preserves the Corporation's enviable record of building its railways on or ahead of time and within budget. Construction work on the Eastern Harbour Crossing is

scheduled to start in mid-1986. Incremental revenues

earned by the Corporation from operating this extension to its system are expected in each year to exceed the sum of fixed semi-annual payments to be made by the Corporation and the operating costs.

During the past year, the Mass Transit Railway system operated efficiently. It has become an integral and essential part of Hong Kong's public transport infrastructure. In fact a Hong Kong without the MTR is inconceivable. I am sure Members will join me in congratulating the board, management and staff for their success in managing this very important asset

of our community.