The arbitration was held in September 2004 following the Government's rejection in July 2003 of NHKTC's September 2002 application for a HK$5 toll increase for private cars (and proportionate increases in other vehicle categories) to take effect from 1 January 2003. The latter application was made in accordance with the recommendation in an earlier arbitration held in 1997 that it would be necessary in order for the NHKTC to earn the reasonable but not excessive remuneration permitted to it under the Eastern Harbour Crossing Ordinance in return for building and operating the Eastern Harbour Crossing.

The arbitrators awarded a higher toll increase of HK$10 in 2005 than NHKTC's application in 2002 due to the elapse of time. The NHKTC's franchise to operate the Eastern Harbour Crossing expires in 2016 and there are now almost two and a half years less in which to earn its reasonable but not excessive remuneration.

Recognizing that time is required to amend certain laws, temporarily the NHKTC will only charge empty taxis the HK$15 they can now charge as return fare for a destination across the harbour via the Eastern Harbour Crossing. This arrangement will last until end June 2005.

The NHKTC will not implement the new toll for light buses until 1 October 2005.

The General Manager of NHKTC Ms. Miranda Yip said, "The Eastern Harbour Crossing has provided the people of Hong Kong a safe, reliable and efficient service for crossing the harbour since its opening in September 1989. The entire EHT team looks forward to continuing to do so in the coming years".

A backgrounder to this press statement is attached.

Media enquiries: