Common use of Potential Future Extensions Clause in Contracts

Potential Future Extensions. On 17th September 2014, the Government issued its RDS 2014 (as defined on page 15). The RDS 2014 proposed the following seven new railway projects in Hong Kong: • The Xxxx Xxxxx Line Extension will extend the existing Xxxx Xxxxx Line by 1.5 kilometres to a new station in Xxxx Xxxxx West. This new station will provide railway access to existing residents in the Xxx Xxxx Estate and other potential developments nearby. Another new station at Xxxx Xxxxx East will also be added to serve the new developments on the Xxxx Xxxxx New Town Extension (East) reclamation. On 28th February 2023, the Company entered into a project agreement with Government for the financing, design, construction, operation, and maintenance of the Xxxx Xxxxx Line Extension. Please see “Projects in Progress” below for further details. • The Tuen Mun South Extension will extend the (former) West Rail Line by 2.4 kilometres to connect Tuen Mun Station to the new Tuen Mun South Station, with an intermediate station at Area 16 to further enhance rail catchment. This will improve connectivity for residents in Tuen Mun South who presently have to travel to Tuen Mun Station in order to access the railway system. On 5th September 2023, the Company entered into a project agreement with Government for the financing, design, construction, completion, pre-operation, operation and maintenance of the Tuen Mun South Extension. Please see “Projects in Progress” below for further details. • The Northern Link and Kwu Tung Station will be a new 10.7 kilometre railway line formed by linking the Xxx Xxxxxx Road Station on the (former) West Rail Line to a new station at Kwu Tung on the Lok Ma Xxxx Spur Line. The Northern Link will improve the east-west connectivity in the northern New Territories, divert passenger flow from the East Rail Line, help connect new development areas in the northern New Territories and enhance cross-boundary movements. On 5th September 2023, the Company entered into a project agreement with Government for the financing, design, construction, completion, pre-operation, operation and maintenance of the Kwu Tung Station. Please see “Projects in Progress” below for further details. • The Hung Shui Kiu Station will be a new station on the (former) West Rail Line located between Tin Shui Wai Station and Xxx Xxxx Station. It will provide railway service for the Hung Shui Kiu New Development Area. • A new East Kowloon Line will aim to connect Diamond Hill Station on the existing Xxxx Xxxx Line (and the SCL) and Po Xxx Station on the existing Xxxxxx Xxxx O Line. This 7.8 kilometre line will run along the north Xxxx Xxxx area and will help serve the densely populated areas in Xxxx Xxx, Shun Tin, Xxx Xxx Ping and Po Tat. • The South Island Line (West) will be a 7.4 kilometre line that connects the South Island Line with the Island Line, serving the western and southern parts of the Hong Kong Island. It will extend railway coverage to new catchment areas in Aberdeen, Wah Fu, Cyberport and Pok Fu Xxx. This new railway line will address the growing transport demand in the western part of the Southern District, improving the overall accessibility and transport capacity as well as relieving pressure on the road network in the Pok Fu Xxx area. • The North Island Line will span approximately 5 kilometres along the northern shore of Hong Kong Island. It will be an extension of the Xxxx Xxxxx Line and the Xxxxxx Xxxx O Line, with stations at Tamar, Exhibition Centre and Causeway Bay North. This new railway line will alleviate the passenger flow on the Island Line and improve east-west rail connectivity, and will help serve the harbourfront areas from Central to Causeway Bay. The Company was invited by the Government in December 2020 to proceed with the detailed planning and design of the Northern Link. For the Northern Link project, the Company awarded the preliminary design consultancy for the main line and associated stations in July 2021. Construction of the Northern Link main line and associated stations is targeted to commence in 2025, for completion in 2034. For Hung Shui Kiu Station, the Company submitted a proposal to the Government in May 2020. In May 2021, the Company was invited by the Government to proceed with the detailed planning and design for Hung Shui Kiu Station project, and the Company awarded the preliminary design consultancy for the project in October 2021. The scheme for the Hung Shui Kiu Station was gazetted under the Railways Ordinance (Cap. 519 of the Laws of Hong Kong) in February 2023. Construction is targeted to commence in 2024 for completion in 2030. This new station, located between Tin Shui Wai and Xxx Xxxx stations on the Tuen Ma Line, will become a significant transport facility serving the new population of the Hung Shui Kiu/Ha Tsuen New Development Area. This is the fourth RDS 2014 railway extension project (following the Xxxx Xxxxx Line Extension, Tuen Mun South Extension – which will become the Tuen Ma Line Extension in the future – as well as Kwu Tung Station and the Northern Link) that the Government has asked the Company to take forward under the ownership investment model. The Company is still in various stages of discussion with the Government, and has yet to enter into projects agreements for the Northern Link and Hung Shui Kiu Station projects. The Government has announced its intention to proceed with certain of these projects using the ownership approach. Different funding models, including the Rail plus Property model, may be deployed to ensure commercial returns on the Company’s investments. Project proposals for the East Kowloon Line, North Island Line and South Island Line (West) were also submitted. The Company continues to work the with Government on challenges pertaining to the North Island Line and South Island Line (West). During the Policy Address in October 2021, the Chief Executive announced plans for the Northern Metropolis Development Strategy, an initiative designed to xxxxxx the city’s future urban and economic development through enhanced railway networks and more extensive connectivity with the Greater Bay Area. Railway projects include: • Constructing the Hong Kong-Shenzhen Western Rail Link to connect the Hung Shui Kiu/Ha Tsuen New Development Area and Qianhai in Shenzhen; • Extending the Northern Link northwards to connect to the new Huanggang Port in Shenzhen via the Hong Kong-Shenzhen Innovation and Technology Park in the Lok Ma Xxxx Loop, a project that will be known as the Northern Link Spur Line; • Extending the East Rail Line to Luohu in Shenzhen; • Extending the Northern Link eastwards from Kwu Tung Station to connect with Lo Wu, Man Kam To and Xxxxx Xxxx Xxx as well as further southwards to Fanling; and

Potential Future Extensions. On 17th September 2014, the Government issued its RDS 2014 (as defined on page 1514). The RDS 2014 proposed the following seven new railway projects in Hong Kong: • The Xxxx Xxxxx Line Extension will extend the existing Xxxx Xxxxx Line by 1.5 kilometres to a new station in Xxxx Xxxxx West. This new station will provide railway access to existing residents in the Xxx Xxxx Estate and other potential developments nearby. Another new station at Xxxx Xxxxx East will also be added to serve the new developments on the Xxxx Xxxxx New Town Extension (East) reclamation. On 28th February 2023, the Company entered into a project agreement with Government for the financing, design, construction, operation, and maintenance of the Xxxx Xxxxx Line Extension. Please see “Projects in Progress” below for further details. • The Tuen Mun South Extension will extend the (former) West Rail Line by 2.4 kilometres to connect Tuen Mun Station to the new Tuen Mun South Station, with an intermediate station at Area 16 to further enhance rail catchment. This will improve connectivity for residents in Tuen Mun South who presently have to travel to Tuen Mun Station in order to access the railway system. On 5th September 2023, the Company entered into a project agreement with Government for the financing, design, construction, completion, pre-operation, operation and maintenance of the Tuen Mun South Extension. Please see “Projects in Progress” below for further details. • The Northern Link and Kwu Tung Station will be a new 10.7 kilometre railway line formed by linking the Xxx Xxxxxx Road Station on the (former) West Rail Line to a new station at Kwu Tung on the Lok Ma Xxxx Spur Line. The Northern Link will improve the east-west connectivity in the northern New Territories, divert passenger flow from the East Rail Line, help connect new development areas in the northern New Territories and enhance cross-boundary movements. On 5th September 2023, the Company entered into a project agreement with Government for the financing, design, construction, completion, pre-operation, operation and maintenance of the Kwu Tung Station. Please see “Projects in Progress” below for further details. • The Hung Shui Kiu Station will be a new station on the (former) West Rail Line located between Tin Shui Wai Station and Xxx Xxxx Station. It will provide railway service for the Hung Shui Kiu New Development Area. • A new East Kowloon Line will aim to connect Diamond Hill Station on the existing Xxxx Xxxx Line (and the SCLfuture Shatin to Central Link) and Po Xxx Station on the existing Xxxxxx Xxxx O Line. This 7.8 kilometre line will run along the north Xxxx Xxxx area and will help serve the densely populated areas in Xxxx Xxx, Shun Tin, Xxx Xxx Ping and Po Tat. • The South Island Line (West) will be a 7.4 kilometre line that connects the South Island Line with the Island Line, serving the western and southern parts of the Hong Kong Island. It will extend railway coverage to new catchment areas in Aberdeen, Wah Fu, Cyberport and Pok Fu Xxx. This new railway line will address the growing transport demand in the western part of the Southern District, improving the overall accessibility and transport capacity as well as relieving pressure on the road network in the Pok Fu Xxx area. • The North Island Line will span approximately 5 kilometres along the northern shore of Hong Kong Island. It will be an extension of the Xxxx Xxxxx Line and the Xxxxxx Xxxx O Line, with stations at Tamar, Exhibition Centre and Causeway Bay North. This new railway line will alleviate the passenger flow on the Island Line and improve east-west rail connectivity, and will help serve the harbourfront areas from Central to Causeway Bay. The Company was invited by the Government in December 2020 to proceed with the detailed planning and design of the Northern Link. For the Northern Link project, the Company awarded the preliminary design consultancy for the main line and associated stations in July 2021. Construction of the Northern Link main line and associated stations is targeted to commence in 2025, for completion in 2034. For Hung Shui Kiu Station, the Company submitted a proposal to the Government in May 2020. In May 2021, the Company was invited by the Government to proceed with the detailed planning and design for Hung Shui Kiu Station project, and the Company awarded the preliminary design consultancy for the project in October 2021. The scheme for the Hung Shui Kiu Station was gazetted under the Railways Ordinance (Cap. 519 of the Laws of Hong Kong) in February 2023. Construction is targeted to commence in 2024 for completion in 2030. This new station, located between Tin Shui Wai and Xxx Xxxx stations on the Tuen Ma Line, will become a significant transport facility serving the new population of the Hung Shui Kiu/Ha Tsuen New Development Area. This is the fourth RDS 2014 railway extension project (following the Xxxx Xxxxx Line Extension, Tuen Mun South Extension – which will become the Tuen Ma Line Extension in the future – as well as Kwu Tung Station and the Northern Link) that the Government has asked the Company to take forward under the ownership investment model. The Company is still in various stages of discussion with the Government, and has yet to enter into projects agreements for the Northern Link and Hung Shui Kiu Station projects. The Government has announced its intention to proceed with certain of these projects using the ownership approach. Different funding models, including the Rail plus Property model, may be deployed to ensure commercial returns on the Company’s investments. Project proposals for the East Kowloon Line, North Island Line and South Island Line (West) were also submitted. The Company continues to work the with Government on challenges pertaining to the North Island Line and South Island Line (West). During the Policy Address in October 2021, the Chief Executive announced plans for the Northern Metropolis Development Strategy, an initiative designed to xxxxxx the city’s future urban and economic development through enhanced railway networks and more extensive connectivity with the Greater Bay Area. Railway projects include: • Constructing the Hong Kong-Shenzhen Western Rail Link to connect the Hung Shui Kiu/Ha Tsuen New Development Area and Qianhai in Shenzhen; • Extending the Northern Link northwards to connect to the new Huanggang Port in Shenzhen via the Hong Kong-Shenzhen Innovation and Technology Park in the Lok Ma Xxxx Loop, a project that will be known as the Northern Link Spur Line; • Extending the East Rail Line to Luohu in Shenzhen; • Extending the Northern Link eastwards from Kwu Tung Station to connect with Lo Wu, Man Kam To and Xxxxx Xxxx Xxx as well as further southwards to Fanling; and.