HONG KONG TUNNEL CONCESSION REBIDDING HITCH

In January 1999, the Hong Kong government invited bids for the short-term management, operation, and maintenance of the Cross Harbor Tunnel (CHT) as it seeks answers to problems with the original build-operate-transfer (BOT) franchise that will expire in August 1999. CHT is the first of three privatized tunnel projects in Hong Kong and probably the earliest large-scale BOT project in Asia. The original toll for private cars of HK$5 is equivalent to approximately HK$60 in today's money. In an effort to reduce traffic, an additonal HK$5 surcharge was imposed in the early 1990s, thus raising the toll to HK$10. This did little to reduce cross-harbor traffic, however, and the private sector was invited to develop the Eastern Harbor Crossing and Western Harbor Crossing (WHC). The WHC is the most expensive of the three tunnels today, charging HK$30 for private cars. The government has been under pressure to equalize the tolls for the three tunnels, not only because the WHC franchisee is losing money, but also because the opening of the third harbor crossing has not eased traffic congestion at CHT as much as anticipated because drivers prefer to pay the cheaper toll.

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  • Corporate Authors:

    Public Works Financing

    147 Elmer Street
    Westfield, NJ  United States  07090-2433
  • Authors:
    • TAM, A
  • Publication Date: 1999-2

Language

  • English

Media Info

  • Features: Tables;
  • Pagination: p. 18
  • Serial:

Subject/Index Terms

Filing Info

  • Accession Number: 00762837
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Apr 26 1999 12:00AM