XN000022-1992-11-19 — Page 2

THURSDAY, NOVEMBER 19, 1992

GOVT DECIDES TO PROCEED WITH AIRPORT SITE PREPARATION CONTRACT

FOR

THE GOVERNMENT HAS DECIDED TO SEEK FINANCE COMMITTEE'S APPROVAL FUNDS TO ENABLE THE PROVISIONAL AIRPORT AUTHORITY (PAA) TO AWARD THE SITE PREPARATION CONTRACT AT CHEK LAP KOK BEFORE THE VALIDITY DATE OF THE $9.041 BILLION TENDER FROM AIRPORT PLATFORM CONTRACTORS VENTURE EXPIRES AT THE END OF THIS MONTH.

JOINT

HONG PROGRAMME TO THE MAXIMUM EXTENT POSSIBLE BY JUNE 1997,' SPOKESMAN SAID TODAY (THURSDAY).

"WE HAVE TAKEN THIS DECISION IN ORDER TO FULFIL OUR OBLIGATIONS UNDER THE SINO-BRITISH MEMORANDUM OF UNDERSTANDING, WHICH

KONG GOVERNMENT RESPONSIBLE FOR COMPLETING THE

MAKES

AIRPORT

H

A

THE CORE GOVERNMENT

"OUR FIRST PRIORITY CONTINUES TO BE A COMMON UNDERSTANDING WITH THE CHINESE SIDE ON THE OVERALL FINANCIAL ARRANGEMENTS FOR AIRPORT.

THE BUT, PENDING SUCH AGREEMENT, WE ARE TAKING A STEP APPROACH.

BY STEP

ANY

"THE VALIDITY OF THE TENDER EXPIRES ON NOVEMBER 30 AND POSTPONEMENT OF THE CONTRACT AWARD BEYOND THAT DATE WOULD COSTS AND MAKE IT IMPOSSIBLE TO COMPLETE THE AIRPORT ON TARGET.

INCREASE

HIGHLY

"IT IS THEREFORE SENSIBLE FOR THE PAA TO ACCEPT THE COMPETITIVE TENDER FROM AIRPORT PLATFORM CONTRACTORS JOINT VENTURE WITHOUT FURTHER DELAY.

CREATES SAID.

"THE CONTRACT IS DUE TO BE COMPLETED BY APRIL 1996

NO LIABILITIES FOR THE FUTURE SAR GOVERNMENT,

++ THE

AND IT SPOKESMAN

OF

"WE FIRST LOOKED INTO THIS OPTION IN JULY AT THE SUGGESTION THE CHINESE SIDE. AT THAT TIME WE DECIDED IT WOULD BE MORE PRUDENT TO WAIT AND TRY TO REACH OVERALL AGREEMENT WITH THE CHINESE BEFORE AHEAD WITH THIS CONTRACT.

GOING

"NOW, FOUR MONTHS LATER, WE ARE FACED WITH THE PROSPECTS OF BOTH COST INCREASES, AND SERIOUS SLIPPAGES IN THE

WORK, IF CONTRACT IS NOT LET.

THE

"THE BALANCE OF ADVANTAGE HAS THEREFORE CHANGED AND WE ARE CONVINCED THAT IT WOULD BE BEST TO AWARD THE CONTRACT, WHILE UP OUR

KEEPING EFFORTS ΤΟ REACH AGREEMENT WITH THE CHINESE SIDE," THE SPOKESMAN SAID.

"THERE IS CLEARLY NO QUESTION OF US TAKING UNILATERAL ACTION OVER THIS CONTRACT, WHICH IS PART OF A PROJECT AGREED WITH THE CHINESE GOVERNMENT IN THE MOU,

"SINCE THE CONTRACT IS то BE DIRECTLY FINANCED BY THE GOVERNMENT, AND CREATES NO OBLIGATIONS FOR THE SAR GOVERNMENT, WE CLEARLY OPERATING FULLY WITHIN THE MOU IN LETTING THE CONTRACT.

ARE

THE FINANCE COMMITTEE WILL BE ASKED TO APPROVE AN ADDITIONAL ADVANCE TO THE PAA OF $8.63 BILLION FROM THE CAPITAL INVESTMENT FUND.

/THIS WOULD