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The Chief Executive in Council yesterday (November 4) approved the granting of a 10-year extension to the Peak Tramways Company Limited to run and operate the peak tramway after the expiry of its current operating period on December 31.

The company has to pay a non-refundable lump sum full market premium of $36.8 million to the Government before commencement of the extension for the rental of the land occupied for the operation of the peak tramway. The 10-year extension will run from January 1, 2004 to December 31, 2013.

A Government spokesman said today (November 5) that the company had provided stable and satisfactory service in terms of safety and service. It had also provided an important means for tourists to travel to the Peak.

Moreover, it has indicated plans to further improve its operation and passenger facilities.

"The Administration's assessment is that the company should be allowed to continue the peak tramway operation," the spokesman said.

He added that the 10-year extension would preserve one of the major tourist attractions in Hong Kong.

Ends/Wednesday, November 5, 2003

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