5 -

(b)

a substantial part of the cost of the Chek Lap Kok airport will be funded from the private sector, mainly through loans to the Airport Authority, and

through private sector investment in major tenant

facilities such as air cargo terminals and aircraft

maintenance facilities.

PORT DEVELOPMENT AND OTHER CAPITAL EXPENDITURE

the

10. As noted in para 8 above, the key projects necessary for opening of the first runway do not include any port project. This, however, does not mean that port development will not be proceeded with or that no Government funds will be

made available for this purpose in the years ahead. Insofar as financing is concerned, the Government expects that the private sector will continue to finance, build and operate new container terminals as was done for the existing seven

terminals.

multi-purpose

The

Government

terminals

also expects the future to be financed by the private sector.

The Government will continue with the existing arrangement of providing essential support facilities such as the provision

of breakwaters, dredging of navigation channels, provision of

back-up areas for container/multi-purpose terminal operation and anchor buoys for ships. These works will be carried out

as part of the Government's on-going public works programme.

11. While priority will be given to the key airport projects, it is important to keep this in perspective. In the coming years, we have allowed substantial resources for public works

expenditure in areas such as port development, education, the

environment, water supply, new town development, health and

rehabilitation, and transport. Capital expenditure in these

resources allowed for land acquisition,

areas,

together with

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