XN000022-1991-07-19 — Page 6

FRIDAY, JULY 19, 1991

FC APPROVES $6.55 BILLION ADVANCE TO PAA

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ADDITIONAL

THE FINANCE COMMITTEE TODAY (FRIDAY) APPROVED AN ADVANCE OF $6.55 BILLION TO THE PROVISIONAL AIRPORT AUTHORITY (PAA) TO MEET EXPENSES RELATING TO THE PLANNING AND CONSTRUCTION OF THE NEW AIRPORT.

MEMBERS HEARD THAT THE PAA HAD RECEIVED

IN JUNE 1990 A $20 MILLION ADVANCE FROM THE CAPITAL INVESTMENT FUND то PAY FOR INITIAL ESTABLISHMENT AND OPERATING EXPENSES.

ITS

ON JULY 13, 1990 A FURTHER $760 MILLION HAD BEEN APPROVED TO ENABLE THE AUTHORITY TO COMMISSION A CONSULTANCY STUDY ON THE AIRPORT MASTER PLAN AND TO MAKE AVAILABLE A WORKS SITE AT CHEK LAP KOK.

THE FINAL DRAFT REPORT ON THE AIRPORT MASTER PLAN STUDY IS DUE IN OCTOBER THIS YEAR.

IN FEBRUARY THIS YEAR, WORKS STARTED ON THE PREPARATION OF A 29-HECTARE ADVANCE WORKS SITE ON CHEK LAP KOK TO FACILITATE THE RAPID MOBILISATION OF THE MAIN SITE PREPARATION CONTRACTOR.

IT IS EXPECTED THAT THE CALL FOR TENDERS FROM PREQUALIFIED CONTRACTORS WILL BE MADE IN NOVEMBER, WITH A VIEW TO WORK STARTING IN MAY NEXT YEAR.

THE PAA IS NOW GEARING UP AND HAS DRAWN UP A BUDGET UP ΤΟ THE END OF THE 1992/93 FINANCIAL YEAR. IT IS INTENDED ΤΟ ESTABLISH THE FULL AIRPORT AUTHORITY IN THE NEXT LEGISLATIVE COUNCIL SESSION.

AND AND

THE FINANCING STRATEGY FOR THE NEW AIRPORT IS STILL EVOLVING BUT IT INVOLVES THE MAXIMISATION OF PRIVATE SECTOR INVESTMENT PARTICIPATION WHENEVER IT IS COMMERCIALLY, FINANCIALLY OPERATIONALLY DESIRABLE.

AS

THE BUSINESS AND FINANCING STRATEGY WILL BE REFINED FURTHER THE MASTER PLAN AND THE AIRPORT FINANCIAL STUDY PROCEED TOWARDS COMPLETION AROUND THE END OF THIS YEAR.

IN VIEW OF GROWING CONGESTION AT KAT TAK, THERF IS NOW AN URGENT NEED TO TAKE THE PROJECT FORWARD WITHOUT DELAY.

THE MOST IMMEDIATE WORK REQUIRED IS TO INVITE TENDERS FOR THE AIRPORT SITE PREPARATION CONTRACT, TO CONTINUE WITH DETAILED DESIGN OF THE REMAINING WORKS TO BE UNDERTAKEN BY THE PAA AND TO GEAR UP ITS ORGANISATION.

THE PAA ESTIMATES THAT THE "OTAL COSTS OF THE SITE PREPARATION AND RELATED WORLS SUPERVISION IS LIKELY TO BE SOME $9.3 BILLION, AT END-1990 PRICES.

WHILE THE AUTHORITY WILL HAVE TO COMMIT THE FULL VALUE OF THE SITE PREPARATION CONTRACT AT THE TIME OF THE AWARD, IT IS ESTIMATED THAT IT WILL SPEND SOME $4.5 BILLION 17 END 1990 PRICES, OR $5.4 BILLION AT MONEY-OF-THE-DAY PRICES IN THE PERIOD UP TO THE END OF THE FINANCIAL YFAR 1 1992-93.

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