CONFIDENTIAL
Transport 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 t
Sansport infrastructure is HK$ 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 providing the infrastructure for residential, commercial and
industrial areas on Lantau at an estimated cost of
This, like the port, will be incremental development phased to
meet demand
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.
The preceding review indicates total potential expenditure-
Hong Kong Government of about HK$50 bilion, over a period
This can be compared to current reserves of over
HK$72 billion, excluding the SARG Land Fund, which currently stands at about $20 billion. The Government will not, of
years.
course, pay for its share simply by spending its reserves but
will naximise the amount derived from general revenue and
external sources (e.g. loans) in order to maintain the reserves
at a prudent loval
Economic Services Branch
Government Secretariat
ESB CR 8/951/20
Haude
3 July 1990
CONFIDENTIAL
IN