CASH-FLOWS FOR THE AIRPORT

On 19 May, the Chinese side asked for information about the

Financial Support Package for the PAA.

Cash-flows

Cash-flows for the Airport Authority's operation up to the

year 2010 are attached.

1.

2.

The Airport is being constructed as a stand-alone project.

The attached plan represents a careful estimate of the airport's

future position, based on analysis of airport operations in Hong

Kong and overseas by independent financial consultants.

3. The plan is shown first under a mainstream case, which is the

case expected to occur, and then under a downside case,

4.

All figures are in money of the day. The inflation factors

used by the PAA in their calculations are the same as those used

by the Government.

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