CONFIDENTIAL
Briefing Paper on the Financial Aspects of the New Airport and Related Projects
PURPOSE
As promised at the briefing on 3 October 1990, this paper sets out the finan- cial aspects of the airport and related proj-
ects.
BACKGROUND
(a) Location of the new airport
2.
In 1988/89, the Port and Airport Development Strategy (PADS) Consultancy Study examined a number of initial airport sites and identified the following three main airport strategies-
(a) airport remaining at Kai Tak (as the base strategy for comparison);
(b) a new airport at Chek Lap Kok (CLK Strategy); and
(c) a new airport at the West Harbour
between the Lamma and Lantau Island
(West Harbour Strategy)
3.
The decision to build the new
airport at Chek Lap Kok was because this
strategy was better than the West Harbour
strategy on the following key criteria -
(a) greater estimated net economic
benefits.
(b) earlier commissioning by around
twn vears*
(c) lower estimated construction costs (by about 20 per cent):
(d) greater certainty in terms of costs, programming and feasibility of major works:
(e) greater scope for incremental port
development at West Harbour:
(f) improved port access through a new channel west of Lamma Island not being pre-empted;
(g) opportunity for the progressive de- velopment of a better-integrated and more
viable transport infrastructure network
particularly at West Kowloon;
(h) greater potential for urban devel-
opment at North Lantau; and
(i) relatively smaller workload and a
shorter duration of peak workload on the building and construction industry.
(b) Port and Airport Development Strategy
4.
The Administration's financial
approach for the chosen Port and Airport Development Strategy is governed by two
CONFIDENTIAL
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