another story on octopus in hong kong, page-5

Follows is a media release back in 1998 that discusses ERGs contractual relationship with the HK Octopus system. It would indicate that unless options were taken up and extended ERG have left this particular party.

The Hong Kong System, which was introduced in September 1997, now handles 3 million transactions per day on a card base of 4 million issued cards (with a further 2.8 million currently being issued).

In the past two months its operation has been extended outside public transport so that the card can now be used in payphones.

The new contracts are as follows:

A contract to provide second-line maintenance and technical support for the hardware and software comprising the total Creative Star System for two years with a two year option. The total value of this contract is expected to exceed HK$70 (A$14.7) million if the option is exercised.

A contract to upgrade the capacity of the computer system to increase the daily transactions that can be processed from 4 million to 10 million per day.

A provisional contract to provide additional add-value machines for the network in Hong Kong, subject to final approval.
These contracts are in addition to recently announced contracts to fit out a further 2,000 buses for Kowloon Motor Bus and City Bus. The total value of these contracts and the settlement of outstanding variation claims should exceed HK$150 (A$31.5) million.
The resolution of the variation claims follows an earlier settlement of variation claims achieved with Creative Star in March 1997. As a result of this settlement all variation claims to date have been resolved commercially between ERG and Creative Star without the need to resort to arbitration.

The addition of the above contracts brings the total contract value to approximately HK$650 (A$136.0) million.

The System in Hong Kong is the most broad-based contactless smart card system in transport in the world today.