hain considerations -
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(a) to keep the overall costs down
whilst still achieving an efficient airport and
port; and
(b) to keep public sector costs to the
minimum, by encouraging private sector
participation where this makes financial sense. This not only brings in private sector
funds but also the commercial discinlines
and efficiencies of the private sector.
Cross Harbour Tunnel, the Eastern Har-
bour Crossing, the Tate's Cairn Tunnel, the
container terminals, and a range of facilities
at the Kai Tak Airport (such as catering, air
cargo terminal, aircraft maintenance) have
in the past been largely or wholly funded by
the private sector.
PRESENT POSITION
7.
ג
5.
On the basis of data established (at the level considered appropriate for a strategic study), we estimated in 1989 that
the private sector should fund 40 per cent to
60 per cent of the cost of PADS. (If these
figures were adjusted to take into account
the recent decision that Government not the
private sector will build the Lantau Fixed
Crossing, the higher range of private sector
share decreases to 55 per cent. The lower
range does not change as it was already
based on a hypothetical scenario which
assumed that Government took over this
project.)
6.
In anticipating a substantial
private sector participation, we were very
much building on our successful experience.
In particular, it is worth noting that major
projects like the Mass Transit Railway, the
Since October 1989. financial planning has advanced on various fronts. including -
(a) the completion of the financial
study on the Lantau Fixed Crossing and the
Administration's decision to finance the
project instead of inviting bids on a ‘Build,
Operate and Transfer' basis. There are
programming and cost advantages in this
approach, which enhances the certainty of
the whole programme. Moreover, a better
price could be obtained if the franchise to
operate the crossing was sold (partly or
wholly) when traffic revenue was clearer;
(b) the undertaking of two other proj-
ect financial studies to develop the optimum financing strategies for the airport railway
and the new airport at Chek Lap Kok; and
(c) the undertaking of an overall finan-
cial study on the implications of implement- ing the chosen Port and Airport Develop- ment Strategy on the Government's fiscal
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