4.
fransport infrastructure
Road and rail transport links to the new airport are obviously required 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 private sector investment, leaving a Government share of about HK$13:5 billion.
5. Lantau Urban Development
The
Government
will be responsible for creating the land and infrastructure for residential, commercial and
providing the
industrial areas
This, like the
leet demand
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 cauticus and prudent fiscal policy. If HKG thought the costs of a development project were becoming unmanageable, they would, of
course, be re-examined.
The
for Hong
of 15 years.
preceding review indicates total potential expenditure
Kong Kong Government of about HK$50 billion, over a period This can be compared to current reserves of over HKS72 billion, excluding the SARG Land Fund, which currently stands at about $20 billion. The Government will not, of
course, pay for its
share simply by spending its reserves but will maximise the a cunt derived frca general revenue and external sources (e.g. loans) in order to maintain the reserves
at a prudent laval
Economic Services Branch
Government Secretariat
ES3 CR 8/951/80
Maude
3 July 1990
CONFIDENTIAL