Additional PMC. As detailed in paragraph (b)(i) above and as previously disclosed by the Company, the programme for the delivery of the SCL project has been significantly impacted by certain key external events. Not only do these matters increase the cost of works, they also increase the cost to the Company of carrying out its project management responsibilities under the relevant SCL entrustment agreement, which is estimated to be around HK$1,371 million. By December 2020, the aggregate amount of project management fee paid by the Government to the Company in accordance with the payment schedule contained in the SCL EA3 was substantially close to the Original PMC (excluding, for the avoidance of doubt, the Additional PMC of HK$1,371 million previously sought by the Company) and has been expended in full by the Company. The Additional Funding approved by the Legislative Council did not include any Additional PMC for the Company which the Company had previously sought from the Government. Therefore, the cost to the Company of continuing to comply with its project management obligations under the SCL EA3 is currently being met by the Company on an interim and without prejudice basis (to allow the SCL project to progress in accordance with the latest programme) and the Company reserves its position as to the ultimate liability for such costs and as to its right to pursue the courses of action and remedies available under the SCL EA3. However, given the Company’s view that there has been a significant delay to the project programme and associated increase in project management costs to the Company, the Company has written to the Government to restate the Company’s belief that the Company is entitled (in accordance with the terms of the SCL EA3 and following the Company’s receipt of independent expert advice) to an increase in the project management fee, to be agreed by way of good faith negotiations or otherwise determined in accordance with the provisions of the SCL EA3. However, the Government has responded to the Company by reiterating that the Government considers there have not been any material modifications to any of the scope of works, entrustment activities and/or entrustment programme contained in the SCL EA3 and, as such, the Government maintains its position of disagreement to any increase in the project management fee. Despite the fact that this matter needs to be resolved, the Company has continued, and will continue, to comply with its project management obliga...
