XN000022-1994-01-17 — Page 5

MONDAY, JANUARY 17, 1994

FURTHER FUNDING PROPOSED FOR PAA

THE GOVERNMENT

HAS DECIDED TO ASK THE FINANCE COMMITTEE ΤΟ APPROVE FURTHER FUNDS TOTALLING $1.67 BILLION FOR THE PROVISIONAL AIRPORT AUTHORITY (PAA).

1995.

ITEMS.

THESE FUNDS COVER THE PAA'S HEADQUARTERS COSTS UNTIL MARCH AND ENABLE IT TO PROCEED WITH CONTRACTS FOR THREE URGENT WORKS

THE SECRETARY FOR THE TREASURY MR DONALD TSANG, SAID:

H WE HAVE DECIDED TO ASK FOR THIS FUNDING AFTER CAREFULLY CONSIDERING VIEWS EXPRESSED ON THE TWO OPTIONS WHICH WE PUT FORWARD LAST WEEK.

MEMBERS OF THE LEGISLATIVE COUNCIL AND THE AIRPORT CONSULTATIVE COMMITTEE WERE CONSULTED ON JANUARY 13, AND THERE HAS BEEN A GENERAL PUBLIC DISCUSSION ON THE ISSUES INVOLVED, HE SAID.

"WE BELIEVE THAT THERE IS A CLEAR VIEW IN THE COMMUNITY THAT WE SHOULD PRESS AHEAD WITH THE AIRPORT PROJECT AS SPEEDILY AND EFFICIENTLY AS WE CAN, WHILE CONTINUING TO SEEK AGREEMENT WITH THE CHINESE SIDE ON OVERALL FINANCING FOR THE AIRPORT AND THE AIRPORT RAILWAY.

"THIS INDICATES THAT WE SHOULD TAKE UP OPTION 'B' IN THE DISCUSSION PAPER WHICH WE PUBLISHED LAST WEEK.

"IT ENABLES THE PAA TO MOVE AHEAD ON THREE URGENT WORKS IN ADDITION TO MAINTAINING ITS HEAD OFFICE OPERATIONS.

+

ITEMS,

PROCEED

"THE OTHER OPTION OPTION A' WOULD NOT ENABLE US TO SO SPEEDILY BECAUSE IT WOULD ONLY PROVIDE FUNDS FOR THE PAA'S HEADQUARTERS.

"IF, AS WE HOPE, FINANCE COMMITTEE APPROVES THIS FUNDING AT ITS MEETING ON JANUARY 21, WE WILL HAVE TAKEN ANOTHER IMPORTANT STEP ON THE AIRPORT CORE PROGRAMME AND WE WILL BE ABLE то MAINTAIN THE MOMENTUM ON THE AIRPORT ITSELF.

"WHAT WE NOW NEED IS AGREEMENT WITH THE CHINESE SIDE ON OVERALL FINANCING FOR THE AIRPORT AND AIRPORT RAILWAY SO THAT WE CAN COMPLETE THESE PROJECTS TO THE GREATEST EXTENT POSSIBLE BY JUNE 1997.'

A SPOKESMAN SAID THE $1.67 BILLION FUNDING WOULD BRING THE TOTAL AMOUNT OF GOVERNMENT EQUITY ADVANCES APPROVED FOR THE

то PAA $16.26 BILLION. THE FUNDING APPLICATION COMPRISED:

$377 MILLION FOR THE PAA'S HEAD OFFICE EXPENSES FOR ONE YEAR FROM MARCH 31, 1994 TO ENABLE THE PAA TO CONTINUE ITS HEAD OFFICE MANAGEMENT OF THE SITE PREPARATION CONTRACT, THE PASSENGER TERMINAL DESIGN, AND OTHER DESIGN CONSULTANCIES, AND MAINTAIN ITS FINANCIAL, OPERATIONAL AND OTHER MANAGEMENT

FUNCTIONS.

/* $1,294 MILLION