The study on the process for adjustments of public transport fares may be completed by July, Permanent Secretary for the Environment, Transport & Works Rita Lau says.

She told Legislative Councillors today the study covers a number of transport systems, including buses and railways.

On the merging of the MTR and KCR Corporations, Mrs Lau said the Government is still analysing the pros and cons of the merger, adding that there is no timetable for the issue.

Meanwhile, Secretary for the Environment, Transport & Works Dr Sarah Liao briefed councillors on the fund to be allocated to transport and works policy areas.

For 2003-04, the transport provision is $9.495 billion, representing a real growth of 24% over the revised estimate for last year.

The provision for non-recurrent expenditure is $6.41 billion, representing an increase of $1.463 billion over the revised estimate for last year, or a growth of 36.8% in real terms.

Dr Liao estimated the expenditure for public works projects in the coming year will be at about $31 billion.

Outlining the projects of various works departments, Dr Liao said the Architectural Services Department will complete 26 schools. Six leisure and cultural projects are also scheduled to start in the next financial year.

The department will invite tenders for the Central Government Complex, Legislative Council Complex, Exhibition Gallery and Civic Place at Tamar, and construction will start in early 2004.

According to Dr Liao, the Civil Engineering Department will upgrade 250 government slopes and conduct safety screening on 300 private slopes each year under the 10-Year Extended Landslip Preventive Measures Programme.

New drainage improvement projects costing about $500 million will also start in 2003-04 to further improve Hong Kong's stormwater drainage infrastructure.

The Water Supplies Department will continue to extend the water system to meet future demands from new developments, and replace and rehabilitate old water mains to maintain a reliable water supply.

The Government will also implement trial schemes on desalination and reuse of treated effluent to supply non-drinking water at the cable car project at Ngong Ping in Lantau.