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The following contracts have been completed during the year: (1) Wingatui section—per-manent-way ; (2) Wingatui Viaduct—foundations and masonry; (3) Hindon section—formation; (4) Hindon tunnels ; (5) Nenthorn section —formation. The following contracts are in progress : (1) Wingatui Viaduct —iron piers and superstructure; (2) Silver Peak Bridges—masonry; (3) Mount Hyde Bridges —masonry; (4) Taieri Gorge Bridges — superstructure; (5) Deep Stream section—formation. Of the above, the Wingatui Viaduct and the Deep Stream section are expected to be finished in June or July, but the other works are only commencing. The contracts in progress comprise the whole of ths formation and bridges to and across the Deep Stream, 19 miles 57 chains from Chain Hills Junction on the main line. The works still required to be put in hand to complete the Otago Central Railway to Strath Taieri are : (1) Barewood Bridges—masonry; (2) Barewood Bridges —iron piers and superstructure; (3) Permanent-way and stations from Mullocky Gully to Strath Taieri. The masonry contract is nearly ready for advertising, and the one for superstructure will quickly follow. It is proposed to do the platelaying piecemeal, by petty contracts, as the bridges are finished. The station works are a very small matter, which can be done at any time on short notice. With reference to the opening of the first section of the Otago Central Eailway, it has hitherto been taken for granted that no portion should be opened till Strath Taieri was reached ; but it has lately been suggested that the section to Deep Stream, 20 miles, might be opened when the bridges are finished that far. This brings the line to within 4 miles of the Township of Hindon, around which there is a considerable agricultural settlement and some mining, from whence a small traffic may be expected. Hindon stands on a plateau about 900ft. above the level of the railway; but a good road could be graded up at moderate cost. Pending the completion of the line to Deep Stream, excursion-trains may be run up the Taieri Gorge as soon as the rails are laid on the successive lengths. They can be run to Wingatui Viaduct, 8 miles, at once, and to the beginning of the Gorge, at 10J- miles, before Christmas. It is proposed to have a small station at the latter place. The Wingatui Viaduct and the scenery of the Taieri Gorge will be a great attraction to sightseers. Wingatui and Mullocky Sections. —These sections bring up the line to the Wingatui Viaduct, at 8 miles. The platelaying on them was completed in April, 1886, and since then the line has been used in carrying material for the viaduct and other works. An exceptionally heavy fall of rain last winter caused a number of slips and considerable subsidence in embankments, but the damage was quickly made good. The slopes of larger embankments have been soiled, and sown with grass and other seeds. When the vegetation gets a fair hold the danger from slips will.be lessened. Wingatui Viaduct. —This viaduct is 649ft. long over the girders, and 691ft. over the abutments. It is 150ft. from the bed of the stream to the level of the rails. There are three spans 106ft. to centres, and five spans 66ft. to centres. The abutments are of rubble masonry, built of grey-schist stone found near the site. The first two piers from the ends are of concrete. The five intermediate piers consist of malleable-iron columns, well braced. The iron piers stand on large bases of concrete and rubble masonry, which in turn rest on the solid rock or piled foundations. The superstructure consists of malleable-iron lattice main girders, and rolled cross-girders carrying the roadway on the top. Altogether the viaduct contains 3,600 cubic yards of masonry and 584 tons of iron, and its cost is £22,440, exclusive of supervision. There were two contracts for the erection of the Wingatui Viaduct. The first, which included the masonry and concrete abutments, piers, and foundations, was completed on the 4th September, 1886. The second, which includes the ironwork, is now drawing to a close —it is expected to be finished in June. With the exception of being somewhat behind time, the works on both contracts have been carried out in a very satisfactory manner, and reflect great credit on all connected with them. Hindon Section. —This section originally extended from the end of the Wingatui contract, at 8 miles 5 chains, to Deep Stream, at 19 miles 52 chains. Most of the formation-works on the section were done by piecework at various times between 1879 and 1884. 280,000 cubic yards of earthwork, 620,000 cubic yards of rock-cutting, and 4,700 cubic yards of masonry were executed in this way. In March, 1884, the works remaining unfinished were —(1) Five small tunnels to be pierced; (2) special cuttings at various places, mostly rock; and (3) the completion and general trimming-up of earthwork left unfinished when the piecework was stopped. The tunnels were let by contract on the 19th November, 1884, and they are now practically complete. With the exception of being behind time, the work has been done in a satisfactory manner. A piece of bad ground in the Duck Point Tunnel necessitates the rebuilding of about 9 yards of the lining; with that exception, the ground throughout has bean favourable, and there is a large saving in lining at other places. The special cuttings were let by contract on the sth March, 1885, and the works were completed in November, 1886. It was at first proposed to complete the piecework sections by contract at so much per chain or mile, the cost of making plans to show the state of the work being so great. The Mullocky section, 69 chains long, was let in this way, and the work duly carried out, although not in a very satisfactory manner. Subsequently two other sections were advertised; but the tenders received were so much above the estimate that it was determined to do all the work by day labour and piecework. This was done, and in nearly every case the works have been carried out for the estimate. With the exception of a small piece at the extreme end, and a few slips on the portion done by contract, all the formation on the Hindon section is finished. Deep Stream Section. —After the failure by both the original contractor and his sureties to carry out the work, the contract for this section, 4 miles 22 chains, was let to the present contractors on the 24th December, 1884. The works have been carried on energetically, and otherwise in a satisfactory manner throughout. With the exception of a few extras they are now complete.