Is the ACP affordable?

Assuming that

the ACP will be funded exclusively

from the Government's free fiscal reserves, and assuming

that normal revenue yields will be sufficient to meet the

normal expenditure of the

Government, the ACP is

affordable.

belief

The

following

figures demonstrate this

Fiscal reserves at 31.3.91

less

The Set-aside

plus

Government's share of

ACP (minus Airport

Railway and Central/

Wanchai Reclamation

(part)

Balance

(All figures in $ billion

at 1991 prices)

16.0(1)

76.5

53.7

69.7

6.8

Outstanding debt in 1997

3.0(2)

LFC franchise

10.0 (3)

13.0

equals Total cushion

19.8

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