XN000022-1992-11-26 — Page 4

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THURSDAY, NOVEMBER 26, 1992

GOVERNMENT SUBMITS REVISED PROPOSAL ON

PAA FUNDS TO FINANCE COMMITTEE

*

THE GOVERNMENT HAS TODAY (THURSDAY) SUBMITTED A REVISED PROPOSAL TO MEMBERS OF THE FINANCE COMMITTEE ON THE AMOUNT OF FUNDS TO BE ADVANCED ΤΟ THE PROVISIONAL AIRPORT AUTHORITY (PAA) FROM THE CAPITAL INVESTMENT FUND.

NEEDED

THE FUNDS ARE PREPARATION CONTRACT AT CHEK EXPENDITURE.

THE

BY THE PAA FOR THE $9 BILLION

LAP KOK AND FOR OTHER ITEMS

SITE

OF

THE

FINANCIAL SECRETARY, MR HAMISH MACLEOD, SAID: "DURING PAST TWO DAYS I HAVE HAD VERY USEFUL MEETINGS WITH MEMBERS OF THE FINANCE COMMITTEE. THERE WAS VERY CONSIDERABLE SUPPORT FOR THE SITE PREPARATION CONTRACT TO GO AHEAD.

"I HAVE ASSURED THE MEMBERS THAT THE GOVERNMENT'S SPENDING ON SOCIAL SERVICES AND OTHER PROGRAMMES WILL NOT BE AFFECTED BY THIS WORK AND THAT IT WILL CONTINUE TO GROW IN LINE WITH GROWTH IN THE ECONOMY. THERE IS NO QUESTION OF PEOPLE'S LIVELIHOOD SUFFERING BECAUSE OF THIS PROJECT.

HOWEVER MEMBERS HAVE EXPRESSED CONCERNS THAT, AT THIS STAGE, WE SHOULD ONLY PROVIDE FUNDS WHICH ARE ABSOLUTELY ESSENTIAL TO ENABLE THIS PROJECT TO PROCEED," MR MACLEOD SAID.

'IN THE LIGHT OF THESE CONCERNS, WE HAVE IDENTIFIED ITEMS THAT CAN BE TRIMMED OR PHASED. THIS HAS ENABLED US TO SUBMIT A REVISED PROPOSAL WHICH REDUCES THE FUNDS BEING REQUESTED BY $1.931 BILLION FROM THE ORIGINAL $8.630 BILLION TO $6.699 BILLION."

MR MACLEOD EXPLAINED THAT THE $1.931 BILLION AROSE PARTLY FROM: A REDUCTION FROM 17.15 PER CENT TO 12.5 PER CENT IN THE CONTINGENCY SUM REQUIRED FOR THE SITE PREPARATION CONTRACT AND RELATED WORKS; DEFERRAL OF FUNDS TOTALLING $1.058 BILLION REQUIRED AFTER JUNE 1993 FOR FINANCING HEADQUARTERS' MANAGEMENT COSTS; AND DEFERRAL OF EIGHT DESIGN CONTRACTS (AS ANNOUNCED ON NOVEMBER 24).

"THE $6.699 BILLION IS THE MINIMUM NEEDED TO ALLOW THE IMPORTANT SITE PREPARATION CONTRACT AND ITS ESSENTIAL RELATED WORK TO PROCEED, WHILE WE CONTINUE WITH OUR EFFORTS TO OBTAIN AGREEMENT CHINA ON THE OVERALL FINANCING FOR THE AIRPORT,' MR MACLEOD SAID.

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