THE AIRPORT CORE PROGRAMME
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The Need to Replace Kai Tak
A new airport is urgently needed because the international airport at Kai Tak, which has only one runway, is approaching its full capacity of around 28 million passengers a year and cannot viably be enlarged. In terms of international traffic, it is already the world's fourth busiest airport for passengers and third busiest for freight. It handles about 67 per cent of Hong Kong's nine million visitors a year and 30 per cent of its domestic exports. It also plays an important role in the development of southern China, as well as Hong Kong.
In 1993, the throughput of passengers was growing at about 12 per cent. This level of growth means that Kai Tak will be unable to accommodate forecast passenger demand before the new airport's planned opening date in 1997. Hong Kong's economy will, therefore, begin to suffer: for example, the economic disbenefits to Hong Kong of not going ahead with the airport have been estimated to be at least $420 billion, in money of the day (MOD), over the period 1997-2010. This represents only quantifiable losses; it does not include indirect losses caused by the declining effectiveness of Hong Kong as an international trading and financial centre providing comprehensive business services, which could double the estimate.
The ACP was conceived in 1991 out of the Port and Airport Development Strategy (PADS), which had been unveiled in 1989 after years of study. PADS had been designed to provide, in the most cost-effective way, for the growth of both the port and the airport. It covers major extensions to Hong Kong's container port and other developments, which are proceeding separately; while the 10 ACP projects are all associated with the opening of the airport at Chek Lap Kok (with the first of two planned runways).
Memorandum of Understanding
In September 1991, the Prime Ministers of Britain and China signed the Memorandum of Understanding Concerning the Construction of the New Airport in Hong Kong and Related Questions (MOU). The memorandum recognises the 'urgent need for a new airport in Hong Kong in order to ensure and develop its prosperity and stability', and the 'need for the airport project to be cost-effective'. It requires the Hong Kong Government to complete the ACP projects 'to the maximum extent possible' by June 30, 1997, and states that the Chinese Government will 'support the construction of the new airport and related
U projects'.
During 1993, the Airport Committee, which was set up in accordance with the MOU under the auspices of the Sino-British Joint Liaison Group (JLG), held four meetings. Agreement was reached on the award of the Western Harbour Crossing franchise, and the start of the Central Reclamation Phase I works. Discussions continued on overall financing arrangements for the airport and airport railway projects.
The Consultative Committee on the New Airport and Related Projects (ACC) and its four sub-committees (on the airport and its related land development projects; planning, environment and people's livelihood; traffic and transport; and financial matters) held a total of 14 meetings during the year. A wide range of subjects related to the ACP were discussed. The second term of the ACC began in November.
The MOU provides that an Airport Authority will be established and that the ordinance setting up the body will be modelled, as far as possible, on the Mass Transit Railway Corporation Ordinance. A draft Bill has been passed to the Chinese side of the Airport Committee for comment. Public views will also be sought on the draft Bill in early 1994.