1992-05-20 16:31
I C/C S O
852 845 2129 P.05/12
allowance
of
$2.5 bn (i.e. to within $2.5 bn of the
$45.6 bn to be
spent by Government on public works.)
We have set up
rigorous cost control system. The
degree of discipline is
much greater than for normal public works projects in the past. Contracts are being awarded on a fixed price lump sum basis, which shields
the Government from the uncertainty of future
inflation.
It would be unrealistic to suggest that these
costs are immutable: estimates are estimates. But they
have been made after careful design and assessment:
they are not initial guesstimates.
Consultation on the Airport and Airport Railway financing packages is under way. We are optimistic · that the ACP can be completed by mid 1997.
The Government is presenting all its figures on the ACP in March 1991 figures in order to achieve as
much transparency as possible on costs in real terms.
money of the day figures are sometimes used by the MTRC and PAA when talking to bankers, and by the Government when placing fixed price lump sum
However,
is
no price increase in real terms
contracts. There
involved in these figures.
****