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HONG KONG CHEK LAP KOK INTERNATIONAL AIRPORT PROJECT

BACKGROUND NOTE

In October 1989 the Governor of Hong Kong, Sir David Wilson announced his Government's intention, as part of a widescale port and airport development project, to develop a new international airport on Chek Lap Kok and Lantau Islands, to replace Hong Kong's existing airport (Kai Tak) which is approaching saturation point. The HKG plans to have first runway operational before the 1997. Transfer of Rower. airport is to have two runways operating 24 hours a day, capable of handling each year 80 million passengers, 320,000 aircraft movements and 4.4 million tonnes of cargo.

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2. The project will comprise a number of distinct elements including large scale land reclamation works, tunnels and/or bridges to provide road and rail connections between the airport, Hong Kong Island and the New Territories, and a new container/cargo port. The project aims to ensure that Hong Kong remains the major entrepot for Southern China well into the 21st Century. The cost of the core projects (those elements, which are essential for the opening of the airport by 1997) is estimated at around 68 billion at 1990 prices. HKG believes that many of the individual elements of the project will be commercially viable (see below para 12); but it is setting aside substantial sums from general revenue, and it is clear that the project will entail a considerable draw down of Hong Kong's reserves (or the issue of bonds), although by 1997 the very substantial SARG land fund will be available. Revenue from the redevelopment of Kai Tak and the surrounding areas will also provide substantial additional funds in due course and of course the new airport and toll roads will provide further revenue.

3. This is by any standards a very large project, and British business hopes to win a substantial part of the business.

CURRENT POSITION

4. Following the HK Government's announcement in October 1989, it has made a number of important consultancy/advisory appointments, in particular :

(a) Bechtel (US) as Project Managers; Halcrows (UK) are also

involved, but in a subsidiary role.

(b)

(c)

A consortium led by Greiner (US) for the airport master plan study; Maunsell (UK) are also involved.

Kleinwort Benson for the financial study on the Lantau Island/mainland fixed crossing and the airport railway.

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