4
fransport infrastructure
Road and rail transport links to the new airport are obviously requi H and a fixed crossing to Lantau Island will be needed to carry such links. The total estimated (1989) cost of all
transport infrastructure is HK$27 billion. Of this we expect 50% will be provided by
by private sector investment, leaving a Government share of about HK$13.5 billion.
5. Lantau Urban Development
The Government will be responsible
infrastructure for
providing the
industrial areas
This, like the
leet de-and
for creating the land and residential, ccanercial and
on Lantau at an estimated cost of $15 billion. port, will be incremental development phased to
Overall cost in relation to HKG's financial position
The Hong Kong Government has always pursued a cautious and prudent fiscal policy. If HKG
thought the costs of a
development project were becoming unmanageable, they would, of course, be re-examined.
for Hong Kong
The preceding review indicates total potential expenditure Government of about HK$50 billion, over a period This can be compared to current reserves of over excluding the SARG Land Fund, which currently $20 billion. The Government will not, of
ci 15 years.
EKS72 billion,
stands at abcut
course, pay for its share simply by spending its reserves but will maximise the a cunt derived from general revenue and external sources (e.g. lcans) in order to maintain the reserves at a prudent loval
Economic Services Branch
Government Secretariat
ESB CR 8/961/20
Maude
3 July 1990
CONFIDENTIAL
Page 45Page 46