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CALL ON MR HUM, AUSS, BY MR RICHARD ALLEN, CHIEF EXECUTIVE
OF THE PROVISIONAL AIRPORT AUTHORITY: 12 JUNE
Mr Allen handed over a pack of financial details on the airport which had recently been made public and explained the position that the Provisional Airport Authority (PAA) had now reached. The PAA now had 300 staff, and the airport
business and master plans were complete. They were now building up the operational and commercial side of the PAA. There was still a great deal of work to be done: some 27 consultancies and 50 construction contracts would have to be
let in due course. Work on site was progressing well: Shek
Lap Kok island had now been flattened. The PAA had bought
US $40 million worth of construction equipment for use on
the island.
Mr Allen said that he had already initiated talks with banks
and ExIm banks about lending to the PAA. These were
currently initial discussions: the PAA would need actual
funds in about the middle of 1993. Before the PAA could let
the major platform formation (and dredging) contract, they would need to get additional equity funding from the Finance
Committee. Once that was forthcoming, they would not in
fact need further funds until about 1994. But clearly they
would have to commence borrowing from banks before the equity ran out.
Mr Hum asked whether, it was still genuinely realistic that
the airport could be built by 30 June 1997. Mr Allen said
that he thought the date was achievable - based on historic
performance patterns in construction contracts in Hong Kong.
He said that many aspects were on side: the sluggish world
economy meant that there were many consortia looking for
construction work; the labour market in Hong Kong was not
overly tight; and the Hong Kong Government had delayed some
construction projects and therefore the construction
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