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THE AIRPORT CORE PROGRAMME
Last year, excellent progress was made on all the 10 ACP projects with 48 per cent of work completed. By the end of the year, 157 major contracts valued at about $94.3 billion had been awarded by the government, the AA, the MTRC and the Western Harbour Crossing franchisee the Western Harbour Tunnel Company Limited
(WHTC).
Major developments in works during the year included the completion of land formation for the airport platform and of the deck of the first road bridge linking the new airport island with Tung Chung, erection of main span deck sections for the Tsing Ma Bridge and the Kap Shui Mun Bridge, and immersion of the tunnel units for the Airport Railway. The excavation of the Route 3 Cheung Ching Tunnel also was completed.
The seven projects directly funded by the government, together with the Western Harbour Crossing project, are scheduled to be completed by June 30, 1997. Physical works on the new airport are expected to be substantially complete by mid-1997. Allowing nine months for commissioning and trial operations, the target opening date of the new airport is April 1998. The Airport Railway is expected to be com- pleted in the same month and to open by June 1998 after tests and trial running.
The Need to Replace Kai Tak
A new airport is urgently needed because the international airport at Kai Tak is already operating at capacity in terms of passenger throughput. In 1994, Kai Tak --ranked second in terms of international cargo and fourth in international passenger traffic. In 1995, more than 27.4 million passengers passed through Kai Tak, a rise of 8.7 per cent compared with 1994. Tourism receipts amounted to over 72 billion, representing a growth of 12 per cent. Kai Tak handled more than 1.45 million tonnes of international air cargo, a 12.4 per cent rise over 1994. Moreover, 33 per cent of domestic exports, 15 per cent of re-exports and 22 per cent of imports by value passed through Kai Tak.
It is expected that there will be a continuous robust growth in air traffic and Kai Tak will be unable to accommodate the forecast passenger demand. Hong Kong will stand to suffer serious economic losses if Kai Tak has to operate at, or beyond, its designed capacity for a protracted period of time. --
Memorandum of Understanding
The Memorandum of Understanding (MOU), signed by the British and Chinese Governments in 1991, recognises the 'urgent need for a new airport in Hong Kong' and requires the Hong Kong Government to complete the ACP projects 'to the maximum extent possible' by June 30, 1997.
The Airport Committee, which was set up in accordance with the MOU under the auspices of the Sino-British Joint Liaison Group, met frequently at the expert level during 1995 to discuss the overall financing arrangements for the new airport and the Airport Railway, the AA Bill, critical airport franchises and other issues.
In reaching agreement on the financing arrangements for the new airport and the Airport Railway in June, the British and Chinese sides of the Airport Committee expressed their determination and confidence that construction of the new airport and the Airport Railway would proceed with all due speed to full completion as soon