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1. Chief Executive speaks at inauguration ceremony of West Rail

2. Wai Kee unveils $89m rescue plan

3. New chairmen named at universities

4. Extra staff ready as West Rail set to roll

1. Chief Executive speaks at inauguration ceremony of West Rail
Hong Kong Government, 20 December 2003

Following is the speech (translation) by the Chief Executive, Mr Tung Chee Hwa, at the KCR West Rail inauguration ceremony this (December 20) morning:

Mr Tien, distinguished guests and friends,

It gives me great pleasure to officiate at the opening ceremony of West Rail. This new means of transport offering fast, comfortable, reliable and environmentally-friendly services to passengers commuting between the Northwest New Territories and Kowloon downtown will facilitate the development of the Northwest New Territories.

Over the last few years, the Asian financial turmoil and the bursting of the bubble economy in Hong Kong have led to a slump in property prices and persistent deflation. In addition, with the advent of globalisation, industrial processes have migrated from Hong Kong and other high-cost areas to low-cost areas. As a result, Hong Kong suffers from rising unemployment and declining wages. Our traditional advantages and position are facing a challenge. Indeed, Hong Kong has been going through a painful and profound economic restructuring.

However, we are glad that with the staunch support of the Central Government and the concerted efforts of the Hong Kong people, our economy has turned the corner. Gross Domestic Product rose by 4% in the third quarter of this year. Exports have registered double-digit growth and there has been a sharp upturn of demand in the services sector. Unemployment has edged down while our stock market is trending up. The property market has bottomed out. Most importantly, confidence is returning. Of course economic restructuring will take more time, but I know the worst is over. Recovery is gathering momentum and the future is bright.

To sustain our economic growth, the SAR Government will continue to invest heavily in domestic and cross-boundary transportation infrastructure. Within Hong Kong, after the commission of West Rail, rail projects in the pipeline in the years ahead include the Tsim Sha Tsui Extention, the Ma On Shan Rail Link, the Kowloon Southern Link and the Shatin-Central Link. Major highways including the Deep Bay Link and Route 9 connecting Tsing Yi and Shatin will be completed and opened to traffic. As for cross-boundary links, we have the Sheung Shui to Lok Ma Chau Spur Line, the Shenzhen Western Corridor, the HK-Zhuhai-Macau Bridge, two new boundary bridges at Lok Ma Chau-Huanggang and Sha Tau Kok, and the express-rail link between Hong Kong and Guangzhou. They will strengthen the ties between Hong Kong and the Pearl River Delta (PRD) region, enabling more swift and convenient flows of passengers and goods. This is conducive to the creation of a greater PRD economy and to sustaining Hong Kong's economic growth.

West Rail is the largest infrastructure project since the Hong Kong International Airport. On its route is the 5.5-km Tai Lam Tunnel linking Tsuen Wan to Kam Tin, the longest transportation tunnel in Hong Kong. The viaduct connecting Kam Sheung Road Station and Tuen Mun Station is over 13 km, making it the longest bridge in Hong Kong. In addition, the 2-km Kwai Tsing Tunnel between Mei Foo Station and Tsuen Wan West Station was the first of its kind to use advanced hybrid boring technology. It effectively minimised the traffic chaos that might have resulted if conventional methods had been used. These sophisticated works speak volumes for the superior level of professional engineering in Hong Kong, Asia's world city.

Overcoming technical difficulties was but one prerequisite for the completion of West Rail. Most important of all was the understanding and support shown by the residents who were affected by the construction works. I expect the KCRC to repay our citizens with service, safety and efficiency of the highest standard.

Lastly, a big thank you to all who have taken part in the project, including the KCRC Chairman, its Board of Directors, management and staff, and staff of the Government and the various contractors. Well done! Let me tell you, the whole community takes pride in your achievement. I am sure you will demonstrate the same professionalism and quest for excellence in your future endeavours and contribute to the creation of a more prosperous Hong Kong.

Thank you very much.

2. Wai Kee unveils $89m rescue plan
DENISE TSANG, SCMP 20 December 2003

Infrastructure company Wai Kee Holdings has tabled a rescue plan for i-China Holdings in an $89.87 million deal which will turn the near-bankrupt firm into a construction flagship.

The white knight is offering a package of cash and construction assets in exchange for 75 per cent of i-China, formerly Seapower International Holdings, which is in the hands of provisional liquidators and entering the final stage of delisting.

The rescue plan, if implemented, will result in a 96 per cent "haircut" of debts, which means creditors will be able to recoup only $22 million in cash from $545 million of debts.

It will also result in resumption of trade in i-China's shares, which have been suspended since January 15 last year.

Wai Kee, which has interests in construction, quarrying, toll roads and biotechnology ventures, aims to create a construction flagship through the reverse takeover of i-China.

According to a Wai Kee statement, its offer was a combination of $29.87 million in cash and its entire portfolio of construction businesses worth $60 million.

The valuation of the portfolio, composed of civil engineering projects for the public sector in Hong Kong and Taiwan, represents a premium of 69 per cent to the net tangible asset value at the end of last year or a 5 per cent premium as of June 30 this year.

The construction portfolio was embroiled in a short-piling dispute between Wai Kee's unit Zen Pacific Group and the Hong Kong Housing Authority.

The dispute was resolved in September with Wai Kee and Zen Pacific paying a combined $80 million fine.

Revenue of the construction portfolio declined 19.63 per cent to $1.06 billion last year, but still came in with a net profit of $25 million from a net loss of $9 million in 2001.

Wai Kee warned of gloomy prospects for Hong Kong's construction sector as the government put infrastructure work on hold to staunch its growing deficit.

To take control of i-China, Wai Kee will distribute 2.19 billion new i-China shares to Wai Kee shareholders on the basis of 14 new i-China shares for every five Wai Kee shares.

Despite the share distribution triggering a mandated general offer for the shares it would not own, Wai Kee said it would apply for an exemption from the Securities and Futures Commission.

3. New chairmen named at universities
Staff reporter , The Standard 20 December 2003

Hopewell Holdings chairman Gordon Wu has been appointed council chairman of City University of Hong Kong (CityU).

The government also announced yesterday that Chief Executive Tung Chee-hwa had appointed Victor Lo as council chairman of the Hong Kong Polytechnic University (PolyU).

Both appointments were for a three-year period and would take effect from January 1, it said.

``We are pleased to have Dr Wu succeeding the retiring Norman Leung as chairman of the CityU council,'' a government spokesman said.

``Dr Wu has been the council chairman of the PolyU for more than six years.

``He is familiar with the developments of the higher education sector in Hong Kong and experienced in university governance.

``His appointment to the CityU council will no doubt provide the strong leadership the university needs to sustain its development.''

Wu is a member of the Hong Kong Logistics Development Council. After his appointment, he resigned his chairmanship at the PolyU Council.

The incumbent treasurer of the CityU council, Chung Shui-ming, has been appointed deputy chairman.

Raymond Or, another member of the council, has been appointed treasurer.

These appointments also take effect on January 1.

``Mr [Victor] Lo is a suitable candidate to lead the PolyU as the university aspires to scale new heights in the years to come. Mr Lo has rich experience in public services. He is the chairman of board of directors of the Hong Kong Science and Technology Parks Corporation and the Honorary President of the Federation of Hong Kong Industries General Committee,'' the spokesman said. Lo, chairman and chief executive of Gold Peak Industries (Holdings), is also a member of the Exchange Fund Advisory Committee, Hong Kong Trade Development Council and Hong Kong Productivity Council and active in community service in the education sector.

He was deputy chairman of the Lingnan University council in the early 1990s, and member of the Sir Edward Youde Memorial Fund Council.

Last year, the PolyU invited him to advise on how the university could reposition itself.

4. Extra staff ready as West Rail set to roll
Cannix Yau , The Standard 20 December 2003

The Kowloon-Canton Railway Corporation (KCRC) will deploy more staff to assist in today's opening of the West Rail train service to ensure everything runs smoothly.

The 30.5-kilometre, HK$46 billion railway linking NT residents with urban areas of Hong Kong will officially open at 2pm after five years in the making. Projected usage is about 200,000 passengers a day and it is expected to increase the capacity of external public transport services by 80 per cent.

The journey times from Tuen Mun and Yuen Long to Nam Cheong will be 30 and 17 minutes respectively. The rail will operate on three-minute intervals, providing a capacity of about 47,000 passengers per hour along the railway corridor.

During a Legislative Council transport panel meeting, Samuel Lai, KCRC's acting chief executive officer-designate, said the corporation had concluded the three-day trial run, and had improved the operation.

During the trial run, passengers complained that the interchange arrangement at Mei Foo station was not convenient, while many said the train shook.

Lai said the corporation had beefed up the number of front-line staff to assist passengers and strengthened its advertising about interchange information. More than 300 temporary staff will be deployed at stations to assist passengers and control crowds.

Lai added the train vibrations had been reduced after the rails and wheels were polished and smoothed.

KCRC will operate six free bus routes for the West Rail operation.

The fare is HK$12.80 for a journey from Tuen Mun to Nam Cheong.

Passengers using Octopus to interchange between the West Rail and 30 existing bus and green mini-bus routes will have concessions ranging from HK$0.30 to HK$1.50.

The arrangement starts today and will be reviewed in six months. In addition, from today until January 31, Octopus users will have a fare discount of HK$2 if they take a taxi to a West Rail station in Northwest New Territories and then interchange for West Rail by using an Octopus card to Tsuen Wan West, Mei Foo or Nam Cheong stations.

Passengers using MTR Nam Cheong or Mei Foo stations can enjoy a 10 per cent discount on MTR fares. The offer is valid to March 31.

The Transport Department's Emergency Transport Co-ordination Centre will monitor the operation and passenger demand for five days from today.