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WEDNESDAY, APRIL 20, 1994
NEVERTHELESS, WE ARE ENERGETICALLY COURSES OF ACTION
PURSUING TWO PARALLEL
* FIRST, WE CONTINUE TO TAKE POSITIVE STEPS TO SEEK TO REACH AGREEMENT WITH THE CHINESE SIDE ON THE FINANCING ARRANGEMENTS FOR THE AIRPORT AND THE AIRPORT RAILWAY.
SECONDLY, WE CONTINUE TO SEEK FUNDS FROM THE FINANCE COMMITTEE ON A STEP-BY-STEP BASIS TO ENSURE THAT WE MAINTAIN MOMENTUM IN CARRYING FORWARD AIRPORT CORE PROGRAMME PROJECTS AS FAR AS WE CAN, TO MINIMISE DELAY AND THE ADDITIONAL COSTS ASSOCIATED WITH IT.
ALTHOUGH OUR TALKS WITH THE CHINESE SIDE HAVE NOT YET PRODUCED A FULL AGREEMENT ON THE AIRPORT AND AIRPORT RAILWAY FINANCING, WE HAVE MAINTAINED THE MOMENTUM OF PHYSICAL WORKS WITH OUR STEP-BY-STEP APPROACH TO THE FUNDING OF PROJECTS.
YOU ONLY HAVE TO LOOK OUT INTO THE HARBOUR то REALISE THE TREMENDOUS ACHIEVEMENTS WE ARE MAKING THE WEST KOWLOON RECLAMATION, WHICH IS NOW MORE THAN 70% COMPLETE; AND THE TWIN TOWERS OF THE TSING MA BRIDGE, WHICH HAVE REACHED THEIR FULL HEIGHT AND ARE NOW BEING LINKED UP WITH WIRES THAT WILL FORM A CATWALK FOR CONSTRUCTION WORKERS. OVERALL ON THE AIRPORT CORE PROGRAMME, CONTRACTS TOTALLING SOME $48 BILLION HAVE BEEN AWARDED, ALL WITHIN BUDGET AND PROGRESSING WELL.
SINCE EARLY 1992, WE HAVE SUBMITTED FOUR SETS OF FINANCING PROPOSALS ΤΟ
THE CHINESE SIDE. IN EACH OF THESE, WE HAVE TRIED ΤΟ MEET THEIR KNOWN CONCERNS TO THE EXTENT POSSIBLE WHILE STILL PROVIDING FOR COST EFFECTIVE ARRANGEMENTS TO ALLOW WORK CONNECTED WITH THE NEW AIRPORT AND AIRPORT RAILWAY ΤΟ BE CARRIED OUT SPEEDILY AND EFFICIENTLY. TO RECAPITULATE, OUR FIRST SET OF FINANCING PROPOSALS IN EARLY 1992 INVOLVED A TOTAL EQUITY INJECTION OF $20.3 BILLION, AND ΤΟ $21 BILLION AS CALLABLE EQUITY TO MEET DOWNSIDE RISKS, THESE WERE FOR THE PROVISIONAL AIRPORT AUTHORITY (PAA) AND THE MASS TRANSIT RAILWAY CORPORATION (MTRC).
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IN SEPTEMBER 1992,
THE CHINESE SIDE SUGGESTED THE IDEA OF PLOUGHING BACK PREMIUM INCOME FROM THE AIRPORT RAILWAY LAND GRANT FUND THE AIRPORT AND THE AIRPORT RAILWAY. BUILDING ON THAT IDEA, WE MADE FURTHER PROPOSALS, THE MOST RECENT OF WHICH WAS THE FOURTH FINANCING PROPOSAL MADE ON THE 2ND OF FEBRUARY. WE BELIEVE THAT THIS PROPOSAL FULLY MEETS THE CHINESE SIDE'S CONCERNS. 1 OUTLINED ITS KEY POINTS IN MY BUDGET SPEECH.
IN BRIEF, THE FOURTH PROPOSAL INCREASED THE PROPOSED EQUITY INJECTION DRAMATICALLY. IN ADDITION TO THE ORIGINAL $20.3 BILLION, TWO FURTHER SUMS WERE PROPOSED. FIRST, A FURTHER INJECTION OF $20 BILLION FROM THE RESERVES. AND SECONDLY, HALF OF THE APPROXIMATELY $40 BILLION ADDITIONAL REVENUE TO BE OBTAINED FROM AIRPORT RAILWAY RELATED LAND IN THE PERIOD TO JUNE 1997.
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