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Chapter:

393 PDFTitle:TATE'S CAIRN TUNNEL ORDINANCEGazette Number:
Section:9Heading:Royalty paymentsVersion Date:30/06/1997

(1) The Company shall pay to the Government a royalty at the rate of-

        (a) 2.5 per cent of the operating receipts for a period of 5 years after the road operating date; and
        (b) thereafter, for the duration of the franchise, 5 per cent of the operating receipts.
(2) The Company shall pay to the Government a further royalty at the rate of-
        (a) 15 per cent of the net operating receipts in excess of the projected net operating receipts for a period of 5 years after the road operating date; and
        (b) thereafter, for the duration of the franchise, 30 per cent of the net operating receipts in excess of the projected net operating receipts.
(3) Payment of such royalty or further royalty, as the case may be, shall be due in respect of each period of-
        (a) 6 months or part thereof, in the case of the royalty payable under subsection (1); and
        (b) 12 months or part thereof, in the case of the further royalty payable under subsection (2),
during which the franchise exists, commencing with the road operating date, and shall be paid within 60 days of the end of each such period.
(4) The acceptance by the Government of any sum tendered by the Company in accordance with this section shall not prevent the Government from claiming a further sum in respect of the same year or any adjustment appearing to be due or necessary on any subsequent examination of the books and accounts and other material furnished by the Company for inspection under section 34.
(5) The payment by the Company of any sum in accordance with this section shall not prevent the Company from claiming a refund in respect of the overpayment made by the Company and proved to the satisfaction of the Financial Secretary.
(6) In this section-
"net operating receipts" (淨營運收入) means the operating receipts reduced by the royalty payable in respect of those receipts under subsection (1);
"operating receipts" (營運收入) means the total gross sums received by the Company in respect of-
        (a) the tolls as fixed or varied under section 36, as the case may be;
        (b) any charges imposed or other benefits obtained by the Company under section 32; and
        (c) any other authorized charges imposed by the Company under this Ordinance;
"projected net operating receipts" (預計淨營運收入) means the projected operating receipts for each year during which the tunnel area is operated by the Company under the franchise as set out in the project agreement, reduced by the royalty under subsection (1) which would be payable in that year upon such receipts.
(Enacted 1988)