XN000022-1994-06-16 — Page 5

THURSDAY, JUNE 16, 1994

FUNDS SOUGHT FOR AIRPORT TERMINAL AND

OTHER WORKS AT CHEK LAP KOK

THE

GOVERNMENT HAS DECIDED TO SEEK APPROVAL FROM THE FINANCE COMMITTEE FOR $8.90 BILLION (MONEY OF THE DAY) ADVANCE FUNDING ΤΟ COVER THE COST OF CONSTRUCTING THE PASSENGER TERMINAL BUILDING AND CONCOURSE AT HONG KONG'S NEW AIRPORT AT CHEK LAP KOK.

ADVANCE FUNDING TOTALLING $4.93 BILLION IS ALSO BEING SOUGHT FOR CONSTRUCTION OF THE FIRST RUNWAY AND OTHER ESSENTIAL CIVIL ENGINEERING WORKS AT CHEK LAP KOK, PLUS $1.08 BILLION FOR THE MANUFACTURE AND INSTALLATION OF THE AIRPORT'S BAGGAGE HANDLING AND AUTOMATED PEOPLE-MOVER SYSTEMS.

A FURTHER $277 MILLION IS BEING SOUGHT TO COVER CONSEQUENTIAL INCREASES IN THE PROVISIONAL AIRPORT AUTHORITY'S HEAD OFFICE EXPENSES.

A GOVERNMENT SPOKESMAN SAID: "THIS APPLICATION TO THE FINANCE COMMITTEE IS AN ESSENTIAL PART OF OUR STEP BY STEP APPROACH ON ADVANCE FUNDING, IN LINE WITH OUR MEMORANDUM OF UNDERSTANDING COMMITMENT TO COMPLETE THE NEW AIRPORT AT CHEK LAP KOK то THE MAXIMUM EXTENT POSSIBLE BY JUNE 1997.

"THE PROVISIONAL AIRPORT AUTHORITY NEEDS FUNDING FOR THESE CONSTRUCTION WORKS SO THAT URGENT TENDERING CAN BEGIN IN JULY. THIS IS ESSENTIAL IN ORDER TO MAINTAIN THE OVERALL MOMENTUM OF THE PROJECT,

"THE GOVERNMENT'S FIRST PRIORITY IS TO REACH AN EARLY AGREEMENT WITH THE CHINESE SIDE ON FINANCING THE AIRPORT AND AIRPORT RAILWAY.

"HOWEVER IT IS NECESSARY, IN PARALLEL WITH TALKS, TO MAINTAIN MOMENTUM ON A STEP BY STEP BASIS. WE HAVE KEPT THE CHINESE SIDE INFORMED",

THE SPOKESMAN SAID THE FUNDING WAS TOTALLY IN LINE WITH UPDATED AIRPORT CORE PROGRAMME COST ESTIMATES PUBLISHED IN JANUARY THIS YEAR. THERE HAD BEEN NO CHANGES.

PAA'S

THE $15.18 BILLION THAT WAS BEING SOUGHT WOULD BRING THE ADVANCES FROM THE CAPITAL INVESTMENT FUND TO A TOTAL OF $31.45 BILLION.

THIS WAS WITHIN THE $36.6 BILLION GOVERNMENT EQUITY PROVIDED THE PAA IN THE GOVERNMENT'S FOURTH FINANCING PROPOSAL ΤΟ THE CHINESE SIDE.

FOR

IT WAS INTENDED THAT THE ADVANCE FUNDING WOULD BE CONVERTED INTO EQUITY WHEN AGREEMENT HAD BEEN REACHED ON FINANCING.

THE SPOKESMAN SAID THE PAA HAD MADE GOOD PROGRESS ON THE FORMATION OF THE AIRPORT SITE, WHICH WAS NOW MORE THAN 60 PER CENT COMPLETE, AND ON DESIGN AND OTHER PREPARATORY WORK.

WAS AWARDED

ON THE PASSENGER TERMINAL BUILDING, DESIGN WORK SUBSTANTIALLY COMPLETE, AND THE FOUNDATIONS CONTRACT HAD BEEN ON MAY 30, 1994.

/THE PAA