XN000022-1989-12-14 — Page 2

THURSDAY. DECEMBER 14, 1989

IMPLICATIONS OF PADS SET IN PERSPECTIVE

(PADS) THE PRICE TAG OF FOR THE TREASURY. MR

THE IMPACT OF THE PORT AND AIRPORT DEVELOPMENT STRATEGY ON THE COMMUNITY IS BOTH GREATER AND SMALLER THAN $127 BILLION WOULD

THE SECRETARY HAMISH MACLEOD, SAID TODAY THURSDAY).

INDICATE,

SPEAKING AT A LUNCHEON MEETING ASSOCIATION, MR MACLEOD SAID THAT BY THIS WANTED TO UNDERLINE TWO ASPECTS OF THE PROJECT.

OF THE GERMAN BUSINESS PARADOXICAL STATEMENT, HE FINANCING OF THIS MAMMOTH

ORDERS OF COST, AT 1989 THINGS THAT WHEN DETAILED

"ON THE ONE HAND, THESE ARE BROAD PRICES; AND IT IS IN THE NATURE OF THESE PLANNING AND COSTING IS DONE, THEY WILL GO UP," HE SAID.

ON THE OTHER HAND, MR MACLEOD RECOGNISE A NUMBER OF CONSIDERATIONS IN ASSESSING HOW HEAVY

SAID, IT WAS IMPORTANT TO PADS MIGHT BE ON THE GOVERNMENT AND THE TAXPAYER.

A BURDEN

HE SAID ONE OF THESE CONSIDERATIONS TO BEAR IN THE EXPENDITURE 1S SPREAD OVER 10 YEARS

MIND WAS THAT OR AIRPORT AND ASSOCIATED TRANSPORT LINKS HAD TO BE

MORK, AND ALTHOUGH THE THERE WAS SCOPE FOR PHASING THE PORT WORKS IN THE LIGHT OF DEMAND

IN PLACE BY 1997, CASH FLOW.

AND

60 POR

ANOTHER CONSIDERATION WAS THE SCOPE FOR 40 PER CENT TO CENT OF THESE COSTS TO BE BORNE BY THE PRIVATE SECTOR, HE ADDED.

"THE FINAL DECISIONS ON FUNDING THESE TAKEN FOR A YEAR OR SO. WHEN DETAILED COSTINGS WILL BE AVAILABLE.

PROJECTS WILL NOT

DE

"BUT WE KNOW ALREADY THAT ITEMS LIKE TENANT FACILITIES AIRPORT, THE BRIDGE TO NORTH LANTAU, THE CONTAINER TERMINALS, WILL

AT THE VIRTUE OF THE REVENUE THEY PRODUCE BE

WILL BY ATTRACTIVE INVESTORS.

TO PRIVATE SECTOR

"P

"THE RAILWAY AND THE AIRPORT WILL BE FUNDED VERY SAME LINES

AS THE MTRC

A MIXTURE BORROWING,

OF GOVERNMENT HE SAID.

MUCH ON THE EQUITY AND

THE LONGER TERM THERE HE SAID, RECALLING

TO CHOOSE CHEK WAS MADE THAT IN LAND

IT SHOULD ALSO BE REMEMBERED THAT IN WERK SOME REVENUE SPIN-OFFS FROM THESE PROJECTS, THAT AT THE PRESS CONFERENCE ANNOUNCING THE DECISION LAP кок, A "BACK OF THE ENVELOPE" ESTIMATE REDEVELOPMENT OF KAI TAK ALONE MIGHT RAISE ABOUT $20 BILLION REVENUE.

"THE POSSIBLE LIFTING OF HEIGHT KOWLOON COULD ALSO HAVE USEFUL REVENUE IMPLICATIONS,

RESTRICTIONS IN PARTS

HE ADDED.

OF

BE ABLE BUDGET

MR MACLEOD POINTED OUT THAT THE GOVERNMENT WOULD ALBO TO DRAW TO SOME EXTENT ON ITS RESERVES AND INDEED IN THE AN INITIAL SUM OF $7 BILLION WAS SET ASIDE FOR THIS PURPOSE.

LAST

/"HOWEVER, WE