Hong Kong Ordinances

WESTERN HARBOUR CROSSING ORDINANCE - SECT 61

Liability of the Company and amount payable by the Government on the vesting in the Government of its assets

(1) On the cessation of the rights and obligations of the Company under
section 60(1), the Company shall be liable, in addition to any other payment
due to the Government, to pay-

   (a)  all sums payable to the Government under the project agreement; and

   (b)  any expenses which may be reasonably incurred by the Government-

        (i)    in bringing any land or incomplete construction works to a
               satisfactory condition in order to enable the
               construction works either to be maintained in a state in which
               they can be continued or abandoned as the Director may
               determine, including any costs of land restoration; or

        (ii)   in bringing the construction works to a safe condition.

(2) Subject to subsection (4) and section 62, on the cessation of the rights
and obligations of the Company under section 60(1), the Government shall be
liable to pay to the Company in respect of the assets of the Company vesting
in the Government under section 60(2), such amount as may be agreed between
the Government and the Company, in accordance with the project agreement, as
representing the reduced value of such assets at the time of vesting or, in
default of such agreement, such amount as may be determined by arbitration
under the Arbitration Ordinance ( Cap 341).

(3) In determining the value for the purposes of subsection (2) where the
vesting of the assets in the Government is in consequence of a default, there
shall be deducted from what would, but for this subsection, be the reduced
value of the assets, such amount as may be agreed or determined in accordance
with the provisions of that subsection for-

   (a)  damages occasioned to the Government by such default calculated on the
        basis that the construction works had been, or are to be, constructed
        for the beneficial use of the Government and that the Government is
        the franchise holder under Part II;

   (b)  the costs to the Government of obtaining the revocation of the
        franchise under this Part.

(4) No amount shall be payable to the Company under subsection (2) on the
cessation of the rights and obligations of the Company under-

   (a)  section 60(1)(a) or (b), where the commencement of the voluntary
        winding up or the making of the winding-up order, as the case may be,
        takes place before the operating date; or

   (b)  section 60(1)(c), where the revocation was on the ground that the
        Company had failed or appeared likely to fail to complete the
        construction works within the period referred to in section 13(a) or
        extended period referred to in section 13(b), as the case may be.
        (Enacted 1993)