TNAG-1515-FCO40-2076-Bridges-and-tunnels-in-Hong-Kong-1986 — Page 124

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Hlar 178/1

19 JUN 1986

19) wissio

121

MEMORANDUM FOR EXECUTIVE COUNCIL

XCS (86)5 26

Copy No

178/1

For discussion on 10 June 1986

*

EASTERN HARBOUR CROSSING BILL 1986

Α

B

Introduction

On

3

December 1985, following Members'

consideration of memorandum XCS (85)7, the

the Council advised and the Governor ordered, inter alia, that the offer of the New Hong Kong Tunnel Consortium (the Consortium) to finance, construct and operate the Eastern Harbour Crossing should be accepted. On 5 December 1985, a contract - the

the Project Agreement conditional only upon the enactment of the Eastern Harbour Crossing Ordinance, was entered into with the Consortium, under which the members

the members of the Consortium are jointly and severally liable for the performance of the contract, see XCCI (86) 2 of 7 January 1986 at Annex A.

2

The

purpose of this memorandum is to report developments since the signing of the contract, in particular the need to execute supplementary documentation, and to seek Members' advice on whether the Eastern Harbour Crossing Bill 1986 at Annex B should be introduced into the Legislative Council.

Background

3

The basis for the contract with the Consortium was their offer of 3 November 1985, which was amplified and modified by a series of exchanges. A binding contract conditional only upon the enactment of legislation was established on 5 December 1985 subsequent to consideration of XCS (85)7 on 3 December 1985.

Supplementary documentation

Members'

4

(a) Novation Agreement

The existing contract of 5 December 1985 is between the Consortium and Government.

It was the intention of both parties, however, that the road and rail franchises should be granted to a single company and that means would be found for the transfer of the rights and obligations of the Consortium to the New Hong Kong Tunnel Company

•

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