CONFIDENTIAL
HKA 182/3
167
130227
MDLIAN 5634
CONFIDENTIAL
FM HONG KONG
TO PRIORITY FCO
TELNO 2130
OF 171025Z AUGUST 92
INFO ROUTINE PEKING, UKREP JLG HONG KONG
-166
TOP COPY Q DIST?
YOUR TELNO 1228: AIRPORT CORE PROJECTS: AWARD OF CONTRACTS.
WE ARE PRESSING AHEAD WITH ALL AIRPORT CORE PROGRAMME PROJECTS EXCEPT FOR THOSE LIKELY TO BE AFFECTED BY OUR NEGOTIATIONS WITH THE CHINESE ON THE AIRPORT AND AIRPORT RAILWAY
FINANCING PACKAGES.
2.
PHASE I OF THE CENTRAL RECLAMATION, WHICH WILL PROVIDE SOME 20 HECTARES OF LAND TO ACCOMMODATE THE EXPANSION OF THE CENTRAL BUSINESS DISTRICT AND CONSTRUCTION OF THE AIRPORT RAILWAY HONG KONG TERMINUS, IS ONE OF THE PROJECTS AFFECTED BY THE NEGOTIATIONS WITH THE CHINESE. THEREFORE, WE HAVE NOT APPROACHED FINANCE COMMITTEE FOR FUNDS FOR THIS PROJECT, WHICH IS ESTIMATED TO COST DOLLARS 1.8 BILLION IN MARCH 1991 PRICES OR DOLLARS 2.7 BILLION IN M MONEY OF THE DAY (MOD). HOWEVER, TENDERS WERE INVITED ON 8 JUNE AND ARE DUE TO BE RECEIVED ON 1 SEPTEMBER. SUBJECT TO THE OUTCOME OF THE AIRPORT TALKS, WE HOPE TO BE ABLE TO AWARD THE CONTRACT BEFORE END-OCTOBER.
3=
-
G
THE WEST KOWLOON
THE TWO OTHER PROJECTS MENTIONED IN TUR RECLAMATION CONTRACT COVERING THE RECLAMATION OF THE YAU MA TEI
TYPHOON SHELTER AND THE CONTRACT FOR THE YAM O SECTION OF THE NORTH LANTAU EXPRESSWAY ARE PUBLIC WORKS WHICH WILL BE FULLY FUNDED BY THE GOVERNMENT. THEY ARE NOT THE SUBJECT OF CONSULTATION UNDER THE MOU AND THEREFORE CAN AND WILL BE PURSUED IRRESPECTIVE OF THE CURRENT IMPASSE WITH THE CHINESE. THE FINANCE COMMITTEE HAS APPROVED APPROXIMATELY DOLLARS 2 BILLION IN MARCH 1991 PRICES (OR DOLLARS 2.8 BILLION IN MOD FOR THESE PROJECTS. TENDERS FOR THE WEST KOWLOON RECLAMATION CONTRACT WERE INVITED ON
12 JUNE THIS YEAR AND THE TARGET AWARD DATE IS 23 SEPTEMBER. TENDERS FOR THE YAM O CONTRACT WERE INVITED ON 3 APRIL AND THE
TARGET AWARD DATE IS 7 SEPTEMBER.
4.
WE DO NOT EXPECT ANY ADVERSE PUBLIC OR CHINESE REACTION TO THE AWARD OF THE WEST KOWLOON RECLAMATION AND YAM O CONTRACTS, ESPECIALLY SINCE BOTH ARE LIKELY TO FALL WITHIN OUR BUDGETTED
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