Start of work on tunnel 'vital'
STARTING work on the Western Harbour Crossing (WHC) project is vital, the Government said amid fears of a revolt among legislators unhappy with a toll increase formula.
A government spokesman said: ''It is important that we press ahead extremely quickly with the legislation, and we hope it can be approved this session.
''The urgency arises from the need to start construction in August. If we do not meet that date, there is a risk of increases in costs and a delay in the opening of the crossing.'' Despite legislators' reservations, the spokesman pledged that public interest had been taken into account and that the Government had negotiated the best possible terms with the franchise-holder, the Western Harbour Tunnel Company.
''The primary aim has been to safeguard public interest. We believe that the arrangements we will be putting to Legco fully meet that objective,'' said the spokesman.
''The arrangements include a stable toll regime, and provision for the franchisee to earn a reasonable return on investment, which is essential for the project's commercial viability.'' The Executive Council endorsed on Tuesday the Government's proposal to introduce a new formula that set the toll for the planned third cross-harbour link at $30 and allowed the franchisee to raise it to maintain profits.
The Government agreed with the franchise-holder that the rate of return on its tunnel investment should be set at between 15 to 18.5 per cent.
It also proposed that an automatic adjustment mechanism be introduced to guarantee that the company maintained the target rate of return.
Legislators said they should not be held responsible if the draft bill on the WHC arrangements was not passed before the current session ended on July 21.
United Democrats' infrastructure spokesman Albert Chan Wai-yip said the group could not accept that future toll increases for the WHC would not have to be approved by Legco.
Members were also dissatisfied with the proposed rate of return percentage.
Details of the franchise and the WHC Bill will be made public tomorrow , following agreement between China and Britain at the Joint Liaison Group Airport Committee last Friday.
