XN000022-1992-04-30 — Page 2

THURSDAY, APRIL 30, 1992

NEW AIRPORT

THE FINANCIAL PLAN

AGREEMENT HAS BEEN REACHED IN PRINCIPLE BETWEEN THE GOVERNMENT AND THE PROVISIONAL AIRPORT AUTHORITY ON THE FINANCIAL PLAN FOR KONG'S NEW AIRPORT AT CHEK LAP KOK,

HONG

FOR

THE

THIS WAS ANNOUNCED TODAY (THURSDAY} BY THE SECRETARY ECONOMIC SERVICES, MRS ANSON CHAN, WHEN SHE PRESENTED DETAILS OF PLAN ΤΟ A LEGISLATIVE COUNCIL AD HOC GROUP AND THE AIRPORT CONSULTATIVE COMMITTEE.

THE PRESENTATION WAS BASED ON THE ESTIMATE OF $46.3 BILLION, (AT MARCH 1991 PRICES) WHICH WAS ANNOUNCED ON APRIL 2, FOR THE TOTAL CAPITAL COST OF COMMISSIONING THE FIRST PHASE OF THE AIRPORT IN 1997.

"WE HAVE A STRATEGY WHICH IS PRUDENT AND ROBUST," MRS CHAN

SAID.

"FIVE OVERALL OBJECTIVES HAVE BEEN ADOPTED IN THE PREPARATION OF THE FINANCIAL PLAN. THESE ARE:

"FIRST, TO COMPLETE THE AIRPORT ON TIME AND IN THE MOST COST- EFFECTIVE MANNER CONSISTENT WITH ACHIEVEMENT OF OPERATING STANDARDS. EXPECTED OF A MAJOR INTERNATIONAL AIRPORT.

"SECOND, ΤΟ OPTIMISE THE PRIVATE CONTRIBUTION, WHICH

FUNDS.

SECTOR'S FINANCIAL FROM PUBLIC

WILL MINIMISE DIRECT CONTRIBUTIONS

"THIRD, TO ENABLE THE AIRPORT AUTHORITY TO RAISE DEBT WITHOUT GOVERNMENT GUARANTEE.

MINIMUM.

"FOURTH, TO ENSURE THAT CONTINGENT LIABILITIES ARE KEPT ΤΟ A

"FIFTH, TO ENSURE THAT THE AIRPORT WILL BE ABLE TO OPERATE AS A VIABLE BUSINESS ALONG PRUDENT COMMERCIAL LINES TO THE BENEFIT OF ALL ITS USERS AND THE ECONOMY OF HONG KONG."

OF THE TOTAL $46.3 BILLION, THE AIRPORT AUTHORITY WILL DEVELOP AND FUND WORKS COSTING $33.7 BILLION THROUGH GOVERNMENT EQUITY AND ITS OWN BORROWINGS.

THE WORKS WILL INCLUDE CONSTRUCTING THE AIRPORT SITE, PASSENGER TERMINALS, AND RUNWAYS.

METEOROLOGICAL,

THE GOVERNMENT WILL FUND AIR TRAFFIC CONTROL, POSTAL, CUSTOMS, IMMIGRATION AND OTHER FACILITIES ESTIMATED, SUBJECT TO FINAL REFINEMENTS, TO COST $3.1 BILLION.

IT IS INTENDED THAT MAJOR SUPPORT FACILITIES SUCH AS AIR CARGO TERMINALS, AIRCRAFT MAINTENANCE, CATERING AND FUELLING FACILITIES WILL BE DEVELOPED THROUGH DIRECT PRIVATE SECTOR INVESTMENT.

/IT HAS