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1. LCQ6: Land transport link between Hong Kong and West Bank of Pearl River

2. LCQ8:Recreational and sports facilities in new towns

3. MTR-KCR merger bill put at $68.6b

4. Bridge needed before 2016, says Sarah Liao

1. LCQ6: Land transport link between Hong Kong and West Bank of Pearl River
Hong Kong Government, 16 October 2002

Following is a question by the Hon Hui Cheung-ching and an oral reply by the Secretary for the Environment, Transport and Works, Dr Sarah Liao, in the Legislative Council meeting today (October 16) :

Question :

The Financial Secretary stated at the end of August that, in the long run, it was essential to construct a bridge to connect Hong Kong and the western part of the Pearl River Delta. In this connection, will the Government inform this Council whether:

(a)it will expeditiously conduct feasibility studies on the engineering, financial and environmental aspects of the bridge construction project, and assess the impact of the bridge, upon its commissioning, on the economic development of Hong Kong, especially with regard to the import and export sectors; whether the Administration has received assessment reports submitted by private consortia; if it has, of the details;

(b)the SAR Government and the relevant Mainland authorities have discussed the bridge construction project; if they have, of the details of the discussions; and

(c)the Administration will formulate basic policies and principles for the bridge construction project, so that interested consortia can conduct in-depth study on the feasibility of constructing the bridge?

Reply :

Madam President, There is a common consensus in the community that Hong Kong should spare no effort in pursuing a closer economic tie with the Pearl River Delta area. From the perspective of strategic development, the construction of a land transport link between Hong Kong and the Western bank of the Pearl River will further enhance the integration of the two economies, and strengthen the role of Hong Kong as a regional economic and transport hub.

In the third Mainland/HKSAR Conference on the Coordination of Major Infrastructure Projects held last month, a consensus was reached to jointly study issues relating to the Hong Kong - Pearl River West Link, including freight traffic and traffic flow forecasts, alignments, and economic benefits. We are following up with the State Development Planning Commission on how to proceed with this joint study.

The HKSAR Government are aware, through the media or other means, that there are a number of different proposals regarding the land transport link between Hong Kong and the Western bank of the Pearl River. We consider it inappropriate to comment on individual proposals for the time being. We will take into account all proposals in our study.

We will also investigate certain policy principles such as whether to adopt the build-operate-transfer approach, how to draw up a toll mechanism, and the construction of supporting infrastructures, so that interested parties can conduct further studies on the feasibility of the project. The Government will undoubtedly uphold its principle of fairness, justice and openness in handling this project.

2. LCQ8:Recreational and sports facilities in new towns
Hong Kong Government, 16 October 2002

Following is a question by the Hon Albert Chan and a written reply by the Secretary for Home Affairs, Dr Patrick Ho, in the Legislative Council today (October 16):

Question:

Members of the public have reflected to me that the recreational facilities and sports grounds in new towns are inadequate, and hence fail to meet the local residents' expectation in this regard. In fact, while the populations of Tung Chung and Tin Shui Wai North have exceeded 40,000 and 100,000 respectively, both districts lack sufficient recreational and sports facilities and there is only one 5-a-side soccer pitch in Tin Shui Wai North. In this connection, will the Government inform this Council whether:

(a) it has long-term plans to provide sufficient recreational and sports facilities for the two districts, as well as short-term plans to solve the current shortage of such facilities;

(b) it will expedite plans to provide recreational and sports facilities in these two districts; if so, of the details; if not, the reasons for that;

(c) it will consider providing recreational and sports facilities earlier when developing new towns, so that the residents will be able to enjoy the facilities sooner; if so, of the details; if not, the reasons for that; and

(d) it has assessed if inadequate recreational and sports facilities in new towns will give rise to situations in which young people in the districts loiter in the streets when they have no place to go to for entertainment during their leisure time, and aggravates the juvenile delinquency problem?

Reply:
Madam President, My reply to the Honourable Member's questions are as follows:
(a) In order to meet the needs of the residents in Tung Chung and Tin Shui Wai, the Leisure and Cultural Services Department (LCSD) is planning a number of projects involving sports and recreational facilities, including the provision of parks, playgrounds, a sports centre, an indoor heated pool and a library in Areas 2, 7, 17, 18 and 52, Tung Chung, as well as the provision of open spaces, a sports centre cum indoor heated pool and a library in Areas 2, 15, 25, 25A and 25B, Tin Shui Wai. These projects have been included in the "Accelerated Programme" and will be implemented within the next five years subject to the availability of resources.

Prior to the completion of these facilities, the LCSD is exploring the possibility of providing temporary recreational facilities under minor works projects so as to alleviate residents' demand for recreational and sports facilities. For instance, the Department is planning to construct a temporary soccer pitch in Area 13, Tung Chung and provide some temporary greening and sitting-out facilities in Area 52, Tung Chung. Work is also in hand by the Department to identify suitable and available sites at the north of Tin Wah Road for the construction of temporary facilities under minor works projects.

(b) The LCSD will launch the major works projects mentioned above according to the Public Works Programme procedures as required, such as the submission of client project brief, carrying out of project feasibility study, application for the allocation of land and funding, etc. In addition, as some project sites are either being occupied or pending the completion of reclamation works, the projects cannot commence immediately. However, the Department will do its best to shorten the preparatory process for individual projects. It will also actively explore the scope for greater private sector participation in the design, construction and operation of the projects so as to accelerate their implementation and facilitate the early provision of a wide range of leisure and cultural facilities for local residents.

(c) We will work with relevant government departments to ensure that future development of sports and recreational facilities in the new towns ties in with other infrastructure and housing projects, so as to facilitate the early provision of appropriate sports and recreational facilities for the public.

(d) Prior to the completion of the recreational and sports facilities in the new towns, the LCSD will consider providing temporary recreational facilities for use by young people and the public. Other departments including the Social Welfare Department will also provide a wide range of facilities and services for young people, such as the Integrated Children and Youth Services Centres (ICYSC), which offers counseling, supportive services and socialisation programmes for young people. At present, there are six ICYSCs in Tin Shui Wai. In Tung Chung, there are two Centres which provide an integrated, one-stop service for young people and their families, including an overnight outreach service for young night drifters. As there are more young night drifters in districts like Tin Shui Wai and Tung Chung, some ICYSCs in those districts are allocated additional resources and manpower so as to extend their service hours and service focus for the overnight outreach service to young night drifters. An additional Youth Outreaching Social Work Team is also provided in Yuen Long (including Tin Shui Wai) to address the needs of young people in the district.

3. MTR-KCR merger bill put at $68.6b
by Staff reporter, The Standard 17 October 2002

MTR Corp will have to pay up to HK$68.6 billion for the Kowloon-Canton Railway Corporation if the two railways merge, analysts say.

The merger would eat into MTR Corp's earnings in the short-term as the rail operator increased its gearing to fund the acquisition, they said.

The government is conducting a feasibility study on the merger.

Securities house BNP Paribas Peregrine estimated the KCRC had a book value of HK$60 billion and MTR Corp HK$54 billion.

But MTR Corp's annual profit in the last financial year was HK$4.3 billion compared with the KCRC's HK$2.4 billion.

Without staff cuts, cost savings from the merger would only be marginal, the brokerage firm said.

Without the cuts, the firm expected MTR Corp's earnings per share to dip from 85.3 cents to 63.7 cents upon completion of the merger.

Merrill Lynch said the merger would eliminate overlapping costs, including staff and administration, saving up to HK$140 million a year. But MTR Corp would have to increase its gearing from 58 per cent to an estimated 176 per cent to fuel the acquisition. The increased debt level would dent the net income of the listed rail operator between 2003 and 2006.

Merrill Lynch research indicated MTR Corp's earnings could plunge by as much as 22.7 per cent in 2004 to HK$5.66 billion and show a narrower dip of 3.5 per cent in 2006 to HK$7.3 billion.

Merrill Lynch estimated the merger would boost MTR Corp's net income by 51 per cent to HK$4.62 billion compared with HK$3.01 billion without a merger.

It expected MTR Corp to record a profit of HK$8.13 billion this year and maintained a ``strong buy'' rating.

UBS Warburg, however, maintained a ``hold'' rating saying the KCRC, with a higher book value, could boost the overall value of the enlarged entity.

4. Bridge needed before 2016, says Sarah Liao
ANTOINE SO, SCMP 17 October 2002

The proposed bridge linking Hong Kong and the western part of the Pearl River Delta is needed "far earlier" than the original target date of 2016, Secretary for Environment, Transport and Works Sarah Liao Sau-tung says.

Dr Liao also told legislators yesterday that the government had already started its initial environmental assessment of the different proposed landing points in Hong Kong.

The government has previously insisted the bridge will not be needed until 2016.

"There is consensus in Hong Kong the bridge is much needed. I think it will be required far earlier than 2016, now that we have to fit in the growing needs arising from the interaction of Hong Kong and the delta," Dr Liao said.

She said her bureau, the Housing, Planning and Lands Bureau and Economic Development and Labour Bureau were working with the State Development Planning Commission on an initial study.

Senior Hong Kong officials have voiced support for the plan since the project recently gained impetus across the delta. Last month, a team of experts from the commission was sent to Hong Kong to gather data and opinions on the project.

Dr Liao said she hoped the initial study would be completed in "a matter of months".

One of the proposals for the bridge is for it to link Zhuhai and Macau with separate access to Tai O on Lantau, where roads would be built to connect with Chek Lap Kok airport.