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contribution of Government equity to the MTRC, equity payments are shown in thegraph with private rail investments reduced by the same amount. Some large equitycontributions were spread into adjacent years to ensure that public and private railinvestments and equity contributions add up to the actual yearly constructioninvestments.4.6.9 The graphs show clearly the bulge in expenditure in the early 1980s due to manymajor highway projects, road infrastructure construction in the new towns, themodernisation programme of the Kowioon-Canton Railway (KCR) and constructionof the Mass Transit Railway (MTR).Current Committments4.6.10 The total value of all projects, both public and private, currently under constructionor otherwise firmly committed is estimated at $23 billion (current prices), of whichan estimated $11-$12 billion (1 988 prices) remained to be spent from the beginningof 1989.Impact of Inflation4.6.11 The graph in Figure 4.11 shows the cumulative inflation since 1961 for both thegeneral economy (based on the GDP deflator) and for the highway constructionsector (based on the cost changes monitored by Highways Department). Sincethe late 1970s, highway industry inflation has run ahead of general inflation, witha particularly strong growth since 1986. In the two years 1986-1988, highwayconstruction prices rose 32% compared with an 18% increase in prices generally.4.11: CUMULATIVE 19616.06.0 -J —-^—To 1972 • 104.03.02.01.00.0 J L J L J L. J L J L J L J L J L61 64 67 70 73 76 82 86 884.6.12 Recent price rises for railway construction are estimated to be even higher, althoughwith little current construction the estimates are not so firm. Estimates supplied byMTRC indicate the following price rises between 1986 and 1988:Electrical and Mechanical +73%Rolling Stock +23%Civil Engineering +44%72