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5.
The 5 December 1985 contract was signed by each
member of the New Hong Kong Tunnel Consortium, who are
jointly and severally responsible for the completion of
this project. However, the Consortium have formed a road
company, the New Hong Kong Tunnel Co. Ltd., to hold the
road franchise and a rail company, the Eastern Harbour
Crossing Co. Ltd., to hold the rail franchise.
6.
The fundamental objective of the negotiations was
to maximise the benefits for the road user through the
lowest possible tolls and the most advantageous toll
review mechanism. In this respect the Consortium have
agreed to the target toll structure and have agreed to a
toll review procedure comparable to that used in the case
of the Cross Harbour Tunnel. The test of any request for
a toll increase will be that the company remains
reasonably remunerative.
The other key points in the road
franchise are that it will run for 30 years from the start
of construction, and that Government will receive a
transfer of 5% of the equity of the road company, as it is
subscribed, and a further 2.5% on the opening of Tate's
Cairn Tunnel to give a total of 7.5%.
Although not
included in the Bill, it should also be noted that
Government has agreed there will be no passage tax for a
period of 5 years from the start of operations. The road
company will have a capital of $750 million. There will
be a separate rail franchise for 18-1/2 years from the
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