XN000022-1994-11-04 — Page 6

FRIDAY, NOVEMBER 4, 1994

"WE ALSO NEED TO MOVE AHEAD QUICKLY WITH THE AIRPORT BILL AND THE FRANCHISES FOR THE AIRPORT. THE FASTER WE CAN RESOLVE ALL THESE ISSUES, THE FASTER WE WILL BE ABLE TO MAKE PROGRESS ON THESE IMPORTANT PROJECTS.

"THE

AIRPORT

AND AIRPORT RAILWAY ARE ESSENTIAL PARTS OF THE AIRPORT CORE PROGRAMME (ACP) WHICH WILL HELP TO PROVIDE HONG KONG WITH THE STRONG INFRASTRUCTURAL BASE IT NEEDS FOR ECONOMIC SUCCESS IN THE YEARS AHEAD," HE SAID.

BY

OVERALL, A TOTAL OF 73 MAJOR CONSTRUCTION CONTRACTS WORTH NEARLY $53 BILLION HAVE BEEN AWARDED ON THE AIRPORT CORE PROGRAMME THE GOVERNMENT, THE PAA, MTRC AND THE WESTERN HARBOUR CROSSING

FRANCHISEE.

THESE CONTRACTS HAVE BEEN AWARDED WITHIN BUDGET ESTIMATES, AND THE CONSTRUCTION WORKS ARE PROGRESSING EXTREMELY WELL INVOLVING A VERY LARGE WORKFORCE OF SOME 11,000 PEOPLE.

-

COMPLETING THE

"THE GOVERNMENT WILL CONTINUE WITH ITS AIM OF PROJECTS SPEEDILY AND EFFICIENTLY, IN LINE WITH THE MEMORANDUM OF UNDERSTANDING, SAID SIR HAMISH.

"I

A GOVERNMENT SPOKESMAN SAID THE PAA HAD ALREADY RECEIVED SUBSTANTIAL ADVANCE FUNDING TOTALLING $31.4 BILLION, AND IT WOULD NOT REQUIRE FURTHER FUNDING TILL EARLY NEXT YEAR.

THE AIRPORT RAILWAY HOWEVER WAS IN URGENT NEED OF FUNDS SO THAT IT COULD IMMEDIATELY AWARD CONTRACTS FOR WHICH IT WAS HOLDING OPTION LETTERS, AND GO AHEAD WITH TENDERING AND EVALUATION OF FURTHER CONTRACTS.

THE SPOKESMAN SAID THE AGREEMENT RECOGNISED THE CONTINUING FOR COSTS TO BE MONITORED AND CONTROLLED CAREFULLY AND FOR CONTRACTUAL CLAIMS TO BE MINIMISED.

NEED

"THE HONG KONG GOVERNMENT IS EXTREMELY CONSCIOUS OF THE NEED FOR COST CONTROL AND MONITORING. WE HAVE SET UP VERY EFFECTIVE SYSTEMS ON THE AIRPORT CORE PROGRAMME TO CARRY OUT THIS WORK, AND WE HAVE ALSO SET UP SPECIAL PROCEDURES FOR HANDLING CLAIMS, SAID THE SPOKESMAN.

"THE GOVERNMENT WILL GIVE THE AIRPORT COMMITTEE BRIEFINGS ON PROGRESS ON A QUARTERLY BASIS, AND THERE WILL BE A COMPREHENSIVE PROGRESS REVIEW IN THE SECOND HALF OF 1996. THE GOVERNMENT WILL ALSO PROVIDE UPDATED INFORMATION ON PROJECT PROGRESS, FINANCING AND COSTS TO THE AIRPORT CONSULTATIVE COMMITTEE, AND LISTEN ΤΟ MEMBERS' REASONABLE VIEWS AND PROPOSALS.

++

REGARDING THE SEVEN GOVERNMENT-FUNDED ACP PROJECTS, THE SPOKESMAN SAID IT HAD ALSO BEEN AGREED IN THE MINUTE THAT SUFFICIENT FUNDING WOULD BE BUDGETED BY THE GOVERNMENT, SHOULD ANY ONE OF THESE PROJECTS NOT BE COMPLETED BY JUNE 1997. THESE PROJECTS WERE HOWEVER PROCEEDING WELL, BOTH IN TERMS OF TIMING AND COST, AND THE GOVERNMENT DID NOT ENVISAGE ANY SUCH PROBLEMS.

/FOLLOWING TS