CONFIDENTIAL
Press Release
The Financial Aspects of the
New Airport and Related Projects
cocal cost for the key projects necessary to open the first runway of Chek Lap Kok airport in 1997 is estimated to be of the order of $79 billion at 1990 prices, the Government announced today. Some of the projects (for example, the West Kowloon reclamation and expressway, and the Western Harbour Crossing) are required even without the airport.
A significant part of this is expected to be met by the private sector.
The costs will also be offset by considerable revenue arising from the airport projects. This includes potential revenue, at 1990 prices, of nearly 340 billion from land sales at East Kowloon upon the closure of Kai Tak Airport, sales of land formed by reclamation at West Kowloon and North Lantau along the approaches to the replacement airport.
of the Government's
financial approach were
revealed today to members of the LegCo Ad Hoc Group on PADS.
Said the spokesman: "When completed, the investment in the airport and
related facilities will bring to Hong Kong
long-term economic
and financial benefits far greater than the cost of the investment, and these benefits will be enjoyed well into the next century".
Commenting on the new figure of $79 billion at 1990 prices, the spokesman explained that when the Governor announced at the opening of the 1989-90 Legislative Council Session the decision to proceed with the airport, it was in
the context of
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a broad strategy for both port and airport well into the next century. The total cost
CONFIDENTIAL
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