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AIRPORT FINANCING
CONFIDENTIAL
INTRODUCTION
1. This note discusses the financing of the Airport Core Projects (ACP), as listed in the annex to the Memorandum of Understanding (MoU). The MoU does not deal with other elements of the Port and Airport Development Strategy (PADS), which have not attracted Chinese criticism, mainly because of the predominant role of the private sector.
MEANS OF FINANCING
2. The Hong Kong Government is arranging for the ACP projects to be financed in four main ways:
(a) Projects to be funded by the Airport Authority: ie essentially the airport platform and all that goes on it;
(b) The airport railway and associated developments, to be funded by the Mass Transit Railway Corporation (MTRC);
(c) Projects to be funded from the Government public works programme, ie other supporting infrastructure - the airport bridge, roads etc, and
(d) Projects to be funded by the private sector Western cross-harbour road tunnel.
CO-ORDINATION
3.
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eg the
The Government co-ordinates work on the different projects through the New Airport Projects Co-ordination office (NAPCO).
COSTS
3. The total cost of constructing the ACP projects is estimated at:
HK $ 112.2 billion (in March 1991 prices)
(This figure represents direct costs, eg it does not include financing charges, eg loan interest.)
4. The Government's direct financial contribution to constructing the ACP projects (sometimes described as "the cost to Government") is estimated at:
HK $ 59.3 billion
(in March 1991 prices)
CONFIDENTIAL
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