Members are asked to note that the principal elements of each Recommended Strategy would satisfy projected needs up to 2006. Beyond that point, there is а greater degree of uncertainty over the best use for areas identified as having potential for a range of port facilities. Such areas are shown with dotted outlines on the plans at Annexes B, C and D. They will need to be kept "in reserve" until such time as a clearer appreciation has been developed as to their most appropriate
use.
27
For each Recommended Strategy, the broad orders of capital costs over the period 1989 - 2006 are as follows
Major Element
-
Strategy A Strategy B Strategy C
(Present Values @ 1988 prices)
HK$ Million
(a) Airport
Main Works
60*
16020
21427
- Tenant
Facilities
5307
4995
(b)
Port Facilities
28512
28796
27402
(c)
Other Urban
Development
5105
7320
5315
(d) Transport
Infrastructure
4690
16378
17711
(e)
Sewage & Water
Supplies
1665
2037
1773
(£) Total
40032
75858
78617
* Replacement Equipment
Note 1:
These
Note 2 :
estimates
include resumption
detailed
and
compensation costs, allowances for the costs
of planning,
design,
site
investigation and supervision of works. A real discount rate of 4% p.a. has been assumed.
The difference in the earliest airport commissioning date for Strategies B and C is about 2 years. Since the major construction works for Strategy C are spaced over a longer period of time, this reduces the difference in the discounted capital costs between the two strategies.