XN000022-1981-04-16 — Page 2

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CONSULTANCY AGREEMENT ON REPLACEMENT AIRPORT

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HONG KONG'S PLANS FOR A REPLACEMENT AIRPORT AT CHEK LAP KOK, OFF LANTAU, MOVED FURTHER AHEAD WITH THE ANNOUNCEMENT TODAY (THURSDAY) OF A MAJOR CONSULTANCY AGREEMENT.

THE AGREEMENT, FORMALLY SIGNED BY THE DIRECTOR OF ENGINEERING DEVELOPMENT, MR NICKY CHAN, OF THE PUBLIC WORKS DEPARTMENT, AND MR J.N. FEHRER OF R.M.P. ENCON, LIMITED, OF THE UNITED STATES IS FOR A CIVIL ENGINEERING DESIGN STUDY TO BE CARRIED OUT FOR THE AIRPORT.

IT IS ONE OF FIVE STUDIES APPROVED BY THE GOVERNMENT LAST YEAR AND WILL TAKE ABOUT 22 MONTHS TO COMPLETE.

THE OTHER FOUR STUDIES RELATE TO AIRPORT MASTER PLANNING, ENVIRONMENTAL CONSIDERATIONS, METEROLOGICAL AND OCEANOGRAPHIC INFORMATION AND FINANCIAL ASPECTS. THE RESULTS OF THESE STUDIES ARE EXPECTED TO BE PRESENTED TO THE GOVERNMENT BY THE END OF 1982 AND ENABLE IT TO COME TO A FINAL DECISION ON THE BUILDING OF THE AIRPORT.

THE COST OF THE CIVIL ENGINEERING DESIGN STUDY WHICH COVERS CONSULTANTS FEES FOR PRELIMINARY DESIGN FOR THE WHOLE PROJECT, DETAILED DESIGN FOR PHASE I (TO BE DEFINED DURING PRELIMINARY' DESIGN STAGE) AND MODEL TESTS, AMOUNTS TO JUST OVER $58 MILLION,

IN ADDITION, ANOTHER $42 MILLION WILL BE SPENT ON DETAILED SITE INVESTIGATIONS- THE CONSTRUCTION, TESTING AND MONITORING OF A TRIAL RECLAMATION AREA. THE PURPOSE OF THE TRIAL RECLAMATION IS TO VERIFY DESIGN PARAMETERS, AND TO CONFIRM OPTIMUM DES IGN AND METHOD OF CONSTRUCTION.

THIS STUDY WILL BASICALLY FALL INTO TWO STAGES.

FIRST. A GEOTECHNICAL INVESTIGATION AND TEST RECLAMATION IS NECESSARY TO PROVIDE INFORMATION ON THE SUB-SURFACE CONDITIONS FOR DESIGN PURPOSES, AND TO ENABLE DETAILED ESTIMATES OF CONSTRUCTION COSTS TO BE DRAWN UP.

ONCE THE TEST FILL PROGRAMME IS COMPLETED THE PRELIMINARY DESIGN AND SPECIFICATION OF THE CIVIL ENGINEERING WORKS WILL START AND A DETAILED CONSTRUCTION PROGRAMME AND ESTIMATE OF COSTS WILL BE PREPARED.

+THIS CONSULTANCY MARKS A MAJOR STEP FORWARD IN THE LONG PROCESS OF PLANNING AND PREPARING FOR CONSTRUCTING A REPLACEMENT AIRPORT FOR KAI TAK,+ SAID MR CHAN.

STUDIES CARRIED OUT IN THE MID-1960S BY THE CIVIL AVIATION DEPARTMENT IDENTIFIED A PROBABLE SHORTFALL IN KAI TAK'S CAPACITY EXPECTED DURING THE 1980S,

IN 1975, A STUDY OF ALTERNATIVE SOLUTIONS ESTABLISHED THE NEED FOR A RÉPLACEMENT AIRPORT AND A SITE WAS SELECTED AT CHEK LAP KOK. FURTHER STUDIES IN 1979 BY A FIRM OF CONSULTANTS, COMMISSIONED BY THE CIVIL AVIATION DEPARTMENT, INDICATED THE FEASIBILITY OF CONSTRUCTING AND OPERATING AN INTERNATIONAL AIRPORT AT CHEK LAP KOK.

/IN JANUARY