MANAGEMENT OF ASSETS

As presented in Environmental Performance Section. MTR achieved all its targets relating to long-term management of assets.

Whilst the target "to explore the requirement for original suppliers to 'dispose' of parts/equipment etc. at the end of its life cycle through environmentally acceptable means" was achieved, it has been decided not to develop or implement contractual requirements for contractors to take back and dispose of assets for a number of reasons including:

• The length of time between procurement and disposal is often over 10 years and Contractors place a high cost against future risks;

• Contractors, either single parties or Joint Ventures, have obligations that expire after 12 years (Contract under Seal); and

• MTR already controls the disposal of special wastes by approved contractors by specifying compliance with Hong Kong legislation and through its internal Asset Management Manual.