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THURSDAY, MAY 14, 1992
WE HAVE
ᏞᎬᎢ ME NOW TURN TO THE FINANCING OF THE RAILWAY. PROPOSED TO INJECT EQUITY OF $3 BILLION INTO THE MTRC. THE MTRC WILL, INCIDENTALLY, PAY US BACK THE SAME AMOUNT, $3 BILLION, FOR PUBLIC WORKS TO SUPPORT THE BUILDING OF THE AIRPORT RAILWAY. WE PROPOSE TO OFFER FURTHER CALLABLE EQUITY OF $8.8 BILLION то REASSURE THEIR LENDERS THAT THE MTRC'S BORROWINGS WILL BE REPAID, IF THINGS DO NOT TURN OUT AS WELL AS WE HAVE ANTICIPATED. THAT MONEY IS NOT SUPPOSED TO BE PAID OTHER THAN IN EXCEPTIONAL CIRUCMSTANCES WE HAVE DESIGNED THE FINANCIAL PACKAGE SO THAT IT IS UNLIKELY THAT IT WOULD HAVE TO
BE CALLED AT ALL.
THE PUBLIC WILL GET FOR $3 BILLION OF PUBLIC MONEY A MODERN, EFFICIENT, ENVIRONMENTALLY FRIENDLY RAILWAY WHICH COSTS $22.L BILLION TO BUILD. WHAT IS MORE, WE PROPOSE TO ALLOW THE MTRC TO DEVELOP SITES OVER AND AROUND THEIR STATIONS
LAND THAT
BE WOULD
LARGELY UNDEVELOPABLE AFTER THE STATIONS AND RAILWAY LINES HAD BEEN BUILT AND THE MTRC WILL PAY THE GOVERNMENT AROUND $20 BILLION IN PREMIUM FOR IT BEFORE 1997, WITH ANOTHER $20 BILLION GOING TO THE SAR LAND FUND.
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THIS IS OUTSTANDING VALUE FOR MONEY. THE COMMUNITY WILL NOT ONLY GET SPEEDY ACCESS TO THE NEW AIRPORT BUT MUCH NEEDED RELIEF FOR THE TRAVELLING PUBLIC OF CONGESTION ON THE ROUTES BETWEEN CENTRAL AND KHAI CHUNG. IT WILL ALSO PROVIDE RAPID ACCESS TO TSING YI AND THE NEW TOWNS PLANNED FOR NORTH LANTAU. AND IT WILL MAKE RECREATIONAL AREAS ON LANTAU ACCESSIBLE FROM HONG KONG ISLAND AND KOWLOON IN 30 MINUTES.
TURNING NOW TO THE OVERALL COST OF THE ACP, THE INCREASE
FROM $98.6 BILLION LAST YEAR TO $112.2 BILLION (IN MARCH 1991 PRICES) IS NOT EXCESSIVE, GIVEN THE ENORMOUS AMOUNT OF FINAL PLANNING AND OUTLINE DESIGN WORK THAT WAS CARRIED OUT IN THE LAST YEAR.
BUT WHAT IS MUCH MORE IMPORTANT TO THE TAXPAYER IS THE COST ΤΟ GOVERNMENT THAT HAS REMAINED THE SAME SINCE JULY 1991, AT HK$59.3 BILLION (AT 1991 PRICES). MOREOVER, WE HAVE PUT IN PLACE SPECIAL COMPREHENSIVE PROJECT MANAGEMENT AND COST CONTROL SYSTEMS, TOGETHER WITH A PARTICULARLY STRICT FINANCIAL DISCIPLINE OVER GOVERNMENT WORKS.
IN
TO MAKE IT EASIER FOR YOU TO SEE WHERE THERE ARE CHANGES REAL TERMS, WE HAVE CONTINUED TO PRESENT DATA IN MARCH 1991 FIGURES. SOMETIMES HOWEVER WE HAVE TO MOVE INTO MONEY OF THE DAY - FOR EXAMPLE WHEN BANKERS BECOME INVOLVED IN DISCUSSIONS ON MTRC AND PAA BORROWINGS. AND OF COURSE WHEN WE ARE AWARDING FIXED PRICE, LUMP SUM CONTRACTS, AS WITH THE TSING MA BRIDGE.
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SO, LET US HAVE THE VISION AND COURAGE THAT HAS SUSTAINED US IN
DESPITE THE SIREN VOICES OF THE CYNICS AND THE SCEPTICS. SUCH FEARS ARE NOT NEW.
THE PAST,
BACK IN 1975, SOME LEADING MEMBERS OF THE COMMUNITY WERE SPREADING DOOM AND GLOOM FAR AND WIDE WITH FORECASTS OF MASSIVE COST OVER-RUN ON THE BUILDING OF THE MTRC'S INITIAL LINE FROM KWUN TONG TO CENTRAL. ONE EVEN SAID IT WAS A "LOSING GAMBLE".
WELL, IMAGINE WHAT HONG KONG WOULD BE LIKE TODAY WITHOUT THAT "GAMBLE". PICTURE THE ROADS CLOGGED SOLID WITH CARS AND BUSES; IMAGINË THE ENVIRONMENTAL DAMAGE THAT THE TRAFFIC POLLUTION WOULD HAVE CAUSED; THINK FOR A MOMENT ABOUT HOW IMPOSSIBLE IT WOULD HAVE BEEN что HOUSE PEOPLE IN OUR NEW TOWNS.
/THERE WERE