TNAG-1515-FCO40-2076-Bridges-and-tunnels-in-Hong-Kong-1986 — Page 112

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3.

On 1 April 1985, nine consortia or individual

companies submitted proposals and in July 1985, after a

very detailed analysis, the Governor-in-Council decided to

go ahead with a combined road/Mass Transit Railway tunnel

and to invite revised proposals from a short list of three

consortia. As a basis for these proposals a more precise

Project Brief was issued which, inter alia, covered design

and construction standards, laid down target tolls for

1989 $10 for a private car; noted that the length of the

franchise and royalty or equity for Government were

negotiable, offered a 5 year exemption from passage tax,

and, in respect of the rail tunnel, stipulated that the

Mass Transit Railway Corporation lease payments should not

be greater than their forecast net incremental revenue and

that there be no cross subsidy from the road tunnel.

4.

On 1 October 1985, revised proposals based on

this Project Brief were received from the shortlisted

consortia and were the subject of negotiations until

3 November. An assessment of the relative financial and

engineering merits of the three final, negotiated

proposals indicated that the best bid was that from the

New Hong Kong Tunnel Consortium and following the decision

of the Governor-in-Council, on 5 December 1985 a contract

was signed with this Consortium, on the basis of their

final proposal, subject only to the enactment of the

Eastern Harbour Crossing Ordinance.

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