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The Government today (6 June) called for tenders for the operation of cross-boundary passenger ferry services (proposed project) from Tuen Mun Ferry Pier.

A Marine Department spokesman said that following positive expressions of interest in November last year, the Government decided to conduct an open tender exercise for the award of a tenancy to occupy, modify and convert part of the pier into a terminal for ferry services to Macau and cities on the Mainland.

The period of tenancy for the proposed project has been set at seven years with provision for an extension to be agreed between the Government and the successful tenderer. The Government has also reviewed financial arrangements for the project in light of economic problems associated with the outbreak of SARS and has reduced the cost of non-recurrent items to be provided by the successful tenderer by about 18%, or $6 million.

"The longer tenancy term and the reduction in the expenditure on non-recurrent items will help enhance the commercial viability of the proposed project," the spokesman said.

The revised tenancy agreement will now include the following major elements:

(a) The Government will provide necessary services, such as immigration, customs, police, marine control and port health, to support the operation;

(b) The successful tenderer will:

(i) carry out the necessary works for pier modification including the construction of an additional floor (estimated at about $26 million);

(ii) pay for non-recurrent items such as systems, equipment and furniture required for the Government departments' operation (estimated at about $27 million -- a reduction of $6 million from the original estimate of $33 million);

(iii) pay an annual amount of not less than $15 million to the Government;

(iv) pay the electricity and water charges for the operation of Government departments at the proposed terminal (estimated at about $2.5 million per year); and

(v) be responsible for the maintenance and general management of the proposed terminal (estimated at about $8 million per year).

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

"If the tender exercise is successful, we intend to sign a tenancy agreement before the end of 2003," the spokesman said. "Assuming all preparatory work and the actual pier modification works can be completed smoothly, the new terminal can start operation in mid-2005."

Interested parties are required to put 10 copies of their tenders, addressed to the Chairman, Central Tender Board, in the Government Secretariat Tender Box in the lift lobby, Lower G/F, Central Government Offices (East Wing), 20 Lower Albert Road, Central on or before noon on July 18, 2003. Late tenders will not be accepted.

End/Friday, June 6, 2003

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