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The Government of the Hong Kong Special Administrative Region announced today (December 27) the signing of a tenancy agreement with Hong Kong North West Express Ltd for the occupation, modification and use of part of the Tuen Mun Ferry Pier for the operation of cross-boundary passenger ferry services to Macau and Mainland cities.

"An open tender exercise was conducted in June this year and two tenders were received by the tender submission deadline of July 18, 2003," a Government spokesman said.

Under the tenancy agreement, Hong Kong North West Express will:

(a) carry out the necessary pier modification works, including the construction of an additional floor;

(b) pay for the non-recurrent items such as systems, equipment and furniture required for the operations of Government departments;

(c) pay an annual amount of $16.3 million to the Government;

(d) pay the electricity and water charges incurred by the Government departments providing services at the new cross-boundary ferry terminal; and

(e) be responsible for the maintenance and general management of the new cross-boundary ferry terminal.

Subject to the availability of space and the Government's prior approval, North West may sub-let terminal premises designated by the Government, berthing slots, advertising and shopping space (if any) and baggage handling services (if any), and keep the fees received from such sub-letting. Revenue arising from duty-free shops, if any, will be shared between North West and the Government.

"Assuming all preparatory work, including the actual pier modification works, can be completed smoothly, the new cross-boundary ferry terminal can start operation by end-2004 at the earliest," the spokesman said.

North West plans to use all three berths of the new cross-boundary ferry terminal to provide daily ferry services to Macau initially, at a service frequency of one sailing every 30 minutes from 11am to 2am. North West will consider providing ferry services to Mainland ports in the Pearl River Delta Region six months after the new cross-boundary ferry terminal has begun operation.

Ends/Saturday, December 27, 2003

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