project in the summer of 1991 and the Prime Minister and Chinese Premier signed a Memorandum of Understanding when the former visited China, in September 1991. The Chinese Government agreed to support and to encourage potential investors. It was agreed that some of the airport contracts would be funded by HKG, and
that other elements of the airport would be built by an Airport
Authority and by the Mass Transit Railway Corporation.
3.
British and British/Hong Kong companies have been very
successful in securing consultancy contracts and a group led by
British Airports Authority has won the contracts to design the new airport terminals. The contracts for the main bridge
(Lantau Fixed Link) and Phase 1 of the North Lantau Expressway
were won by consortia which include British companies. These
are the two largest airport-related contracts to have been
awarded so far.
4.
Unfortunately, discussions with the Chinese on the overall
financing arrangement for the airport have not produced an
agreement. In the absence of such an agreement, it will not be
possible for the Airport Authority and MTRC to raise the
necessary funds to finance their elements of the airport
programme. HMG/HKG have every intention of implementing the MOU as far as they are able and work will continue on projects to be
funded by HKG. Opportunities still exist for agreement to be reached with the Chinese in the regular meetings of the Airport Committee. We believe that agreement will not be difficult to
achieve if the issue is addressed on its merits.
bullpoints.pad