XN000022-1994-01-13 — Page 17

16

THURSDAY, JANUARY 13, 1994

"WE HAVE HAD HIGHLY COMPETITIVE TENDERING, WHICH HAS ENABLED MANY OF THE GOVERNMENT ACP CONTRACTS TO BE AWARDED BELOW BUDGET. THIS HAS HELPED CONTRIBUTE TOWARDS A $7.6 BILLION REDUCTION, FROM $60.1 BILLION TO $52.5 BILLION, IN THE ESTIMATES FOR THE GOVERNMENT'S SEVEN ACP PROJECTS.

"THE $7.6 BILLION REDUCTION ALSO STEMS FROM THE INTRODUCTION OF LOWER LEVELS OF CONTINGENCIES AND REVISIONS IN OUR CONSTRUCTION

INFLATION FORECASTS."

THE

ON

FOR THE SECRETARY

WORKS, MR JAMES BLAKE, SAID AFTER THE BRIEFINGS: "IN TERMS OF PHYSICAL PROGRESS, SITE FORMATION WORK ON AIRPORT PLATFORM IS MORE THAN 36 PER CENT COMPLETE, WHILE WORK THE WEST KOWLOON RECLAMATION IS MORE THAN 65 PER CENT COMPLETE.

"THE

IS

ON

NORTH

OTHER LANTAU

BRIDGE CONTRACT FOR BUILDING THE TSING MA SUSPENSION 37 PER CENT

MADE COMPLETE. GOOD PROGRESS IS ALSO BEING PROJECTS SUCH AS THE WESTERN HARBOUR CROSSING, THE EXPRESSWAY, AND THE KAP SHUI MUN BRIDGE."

то

MR TSANG EXPLAINED THAT IT WAS NOW NECESSARY TO DECIDE HOW PROCEED ON FURTHER PAA FUNDING, INCLUDING PROVISIONS FOR IMPORTANT AIRPORT CONTRACTS.

"AGREEMENT

IT

FOR WOULD LARGE- TO REACH

WITH THE CHINESE SIDE ON THE OVERALL FINANCING

THE

AND AIRPORT RAILWAY REMAINS OUR PRIMARY AIM. AIRPORT ENABLE US TO PROCEED IN THE MOST COST-EFFECTIVE WAY WITH THESE SCALE PROJECTS. REGRETTABLY, IT HAS NOT YET BEEN POSSIBLE AGREEMENT WITH THE CHINESE SIDE, MR TSANG SAID.

LEGISLATIVE

OF

"IN THAT SITUATION, WE HAVE PUT TWO OPTIONS TO THE COUNCIL.

MEMORANDUM THESE OPTIONS ARE ENTIRELY IN LINE WITH THE UNDERSTANDING BECAUSE THEY SEEK TO MAINTAIN MOMENTUM ON THE AIRPORT SO THAT AS MUCH AS POSSIBLE CAN BE COMPLETED BY MID-1997.

AT CHEK

**THERE CAN BE NO DOUBT THAT AN AIRPORT WILL BE BUILT LAP KOK. THE OPTIONS WE HAVE PUT FORWARD THEREFORE CONSTITUTE A SOUND INVESTMENT BECAUSE THEY WILL NOT BE WASTED."

A GOVERNMENT SPOKESMAN SAID ONE OPTION WOULD BE TO SEEK FUNDING EXTEND THE FOR $377 MILLION, WHICH WAS THE MINIMUM AMOUNT NEEDED TO PAA'S HEAD OFFICE FUNDING INTO 1994/95. THIS WOULD ENABLE THE PAA CONTINUE TO SUPERVISE DESIGN AND SITE PREPARATION WORK.

THE OTHER

OPTION

AND

WOULD BE TO TAKE ANOTHER STEP FURTHER $1.29 BILLION FUNDING TO ENABLE THE PAA TO PROCEED DESIGN PHASE OF BAGGAGE HANDLING AND AUTOMATED PEOPLE-MOVER

BUILDING, AND FOUNDATION WORKS FOR THE PASSENGER TERMINAL CONSTRUCTION SUPPORT FACILITIES.

UNCHANGED.

REAL COST ESTIMATES (EXPRESSED IN MARCH 1991 PRICES) NEW AIRPORT AT CHEK LAP KOK AND THE AIRPORT RAILWAY HAD INCREASES HAD HOWEVER BEEN NECESSARY IN SLIGHT ESTIMATES: $1.6 BILLION IN THE $48.2 BILLION ESTIMATED COSTS BILLION IN THE $33.5 AIRPORT TO BE BORNE BY PAA; AND $0.5 ESTIMATE FOR THE AIRPORT RAILWAY.

ΤΟ

SEEK A WITH THE SYSTEMS, VARIOUS

FOR THE REMAINED THE MOD OF THE BILLION

/THESE INCREASED