(b)
Projects with private sector participation
(i) Chek Lap Kok Airport - The July 1991 estimate of $43.6 billion represented the cost of the
whole airport, net of about $1.2 billion of revenue from real estate development receivable
prior to the airport opening. The total capital cost estimated then was $44.8 billion. The
current estimate of $46.3 billion is therefore $1.5 billion higher, mainly as a result of the
refinement of cost estimates which has been possible since July 1991. With the finalisation
of the Airport Master Plan and resolution of major master planning and engineering issues such
as the location of the passenger terminal and related infrastructure, and the availability of fill
resources and mud disposal areas for the site preparation works, the present estimate which
has a higher level of confidence is developed.
(ii) Western Harbour Crossing - The increase of $0.25 billion is due to the inclusion as part of the Crossing project of the construction of the part of the connecting road network on the
Hong Kong exit which is required to support its opening.
(iii) Airport Railway (AR) - The original estimate of $12.5 billion in July 1991 did not include
the value of construction costs for AR-related civil works on Chek Lap Kok, North Lantau, and
the Lantau Fixed Crossing, the costs of which were included in the respective ACP project
costs. It also excluded land acquisition and design, construction supervision and management
costs. The total cost of these excluded items is $5.7 billion. The cost of the AR has risen by
$3.9 billion since July 1991, from $18.2 billion to $22.1 billion. The increase is mainly due
to the need to modify the existing mass transit railway tracks at Lai King Station to provide a cross-platform interchange with Lantau line trains, the redesigning of the future AR station at Tsing Yi to avoid intrusion on an adjacent recreational development, the change in the AR depot location from a valuable development site in Tung Chung to Tai Ho, the provision of deeper foundations for buildings and tunnels on reclaimed land, and the corresponding increase in design and supervision costs and contingencies. The net increase in scope, offset by savings
achieved by phasing, is estimated at $3.9 billion.