8.

The

Administration

with the MTRC to

that

will shortly start negotiations

ascertain the type and level of financial

support

the Government would need to provide to the

Corporation if the Airport Railway is to start operation immediately on the opening of the airport. Subject to the

outcome of the negotiations, the Adminstration will seek the

advice of the Executive Council on when the Airport Railway

should be commissioned.

9.

The Government's

financial consultancy on the new airport is continuing and a draft final report is expected at

the end of this year. Recent work, in which the Provisional

Airport Authority (PAA) have been closely involved, has focussed on ways of improving the commercial viability of the

airport project through:

10.

(a) a modular and phased approach to construction to

reduce costs associated with commissioning the

initial phase of the airport;

(b) a more. commercial approach to enhancing revenues

from privatized facilities and from real estate

development.

The present plan assumes that:

(a) all major on-airport facilities, except the passenger terminal, will be funded and operated by the private sector. On the passenger terminal,

private sector investment will be encouraged in

those areas which would not impair the

strategic flexibility and

Authority's

airport's efficient operation;

the

Share This Page