XN000022-1992-10-17 — Page 2

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SATURDAY, OCTOBER 17, 1992

AIRPORT PROJECT COST-EFFECTIVE AND WITHIN BUDGET

THE CHIEF SECRETARY, SIR DAVID FORD, SAID TODAY (SATURDAY) THAT THE NEW AIRPORT PROJECT WAS COST-EFFECTIVE AND WITHIN BUDGET.

"WE HAVE LET SO FAR $19 BILLION WORTH OF CONTRACTS FOR THE AIRPORT PROJECT

ALL OF THEM BELOW ESTIMATE," SIR DAVID TOLD REPORTERS OUTSIDE THE CENTRAL GOVERNMENT OFFICES.

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"WE HAVE ANOTHER $11 BILLION WORTH OF CONTRACTS WHICH HAVE COME IN, TENDERS WHICH HAVE COME IN, ALSO WITHIN ESTIMATE. SO THAT'S $30 BILLION WORTH OF CONTRACTS WHICH WE CAN LET ON THIS PROJECT WITHIN ESTIMATE," HE SAID.

THAT WAS A TREMENDOUS RECORD, HE STRESSED.

"AND IT IS TYPICAL OF WHAT WE'VE BEEN ABLE TO DO IN HONG

KONG, BUILDING INFRASTRUCTURE PROJECTS IN TIME AND WITHIN BUDGET, HE

FOR ADDED.

CONTRIBUTION

** AND

FURTHERMORE, OUR ESTIMATE OF THE GOVERNMENT ΤΟ THIS PROJECT MADE IN 1991, WAS THAT THE GOVERNMENT CONTRIBUTION WILL BE $59 BILLION, AND THAT HAS REMAINED CONSTANT THROUGHOUT THAT TIME. IT'S NOT GOING TO COST HONG KONG PEOPLE ANY MORE MONEY AT ALL.

"THAT FIGURE REMAINS CONSTANT. SO I THINK OUR RECORD IN TERMS COST-EFFECTIVENESS IS EXCELLENT AND INDEED SECOND ΤΟ NONE IN MANAGING PROJECTS OF THIS TYPE ANYWHERE IN THE WORLD, SIR DAVID SAID.

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THE CHIEF SECRETARY SAID IT WAS NOT POSSIBLE TO SET A CEILING PRICE SIMPLY BECAUSE EVERYWHERE IN THE WORLD THERE WAS INFLATION WHICH IT WAS IMPOSSIBLE TO ESTIMATE.

AND OF COURSE INTEREST CHARGES WERE SOMETHING OVER WHICH HONG KONG HAD NO CONTROL OF EITHER, HE ADDED.

"AND SO IT IS UNREALISTIC TO SUGGEST THAT ONE CAN PUT A CEILING COST ON THE PROJECT AND BE ABSOLUTELY 100 PER CENT GUARANTEED THAT ONE'S GOING TO MEET THAT PRICE BECAUSE THERE ARE THINGS WHICH ARE OUTSIDE OUR CONTROL, HE SAID.

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"BUT ALL THE MEASURES THAT WE ARE PUTTING IN HAND ARE DESIGNED ΤΟ ENSURE THAT WE KEEP THE COSTS DOWN AND THAT WE KEEP COSTS VERY TIGHTLY UNDER CONTROL, SIR DAVID SAID.

"I

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