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WEDNESDAY, NOVEMBER 9, 1994

FUNDS FOR CONTAINER TERMINAL PROJECT

* * * *

FOLLOWING IS A QUESTION BY DR THE HON SAMUEL WONG PING-WAI AND ACTING SECRETARY FOR PLANNING, ENVIRONMENT AND IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY):

A WRITTEN REPLY BY THE LANDS, MR CANICE MAK,

QUESTION REGARDING

F

THE CONSTRUCTION OF CONTAINER TERMINAL 9, WILL

THE GOVERNMENT INFORM THIS COUNCIL:

(A)

(B)

OF THE AMOUNT OF FUNDS ALLOCATED BY THE GOVERNMENT FOR THE ADVANCE WORKS AND THE PREPARATORY ARRANGEMENTS FOR THE PROJECT, AND THE AMOUNT ALREADY SPENT FOR SUCH PURPOSES; AND

WHETHER, AS THE FOUR BERTHS OF THE PROJECT CANNOT BE FORMALLY AWARDED FOR COMMERCIAL OPERATION, THE GOVERNMENT WILL CONSIDER THE IMMEDIATE APPROPRIATION OF PUBLIC FUNDS TO CONSTRUCT THE FIRST AND SECOND BERTHS, WITH A VIEW TO LEASING OR SELLING THESE BERTHS TO CONTAINER OPERATORS AT AN APPROPRIATE TIME?

ANSWER

MR PRESIDENT,

(A)

+

A TOTAL OF $3536 MILLION HAVE BEEN APPROVED BY THE FINANCE COMMITTEE FOR THE PREPARATORY WORK CONTAINER

TERMINAL

9

AND

THE

FOR

FOR

SUPPORTING INFRASTRUCTURE. OF THIS AMOUNT, $809 MILLION IS THE DUPLICATE TSING YI SOUTH BRIDGE. TO DATE, $20 MILLION HAS BEEN SPENT ON PREPARTORY WORK FOR CONTAINER TERMINAL 9 AND $37.7 MILLION FOR DUPLICATE TSING YI SOUTH BRIDGE. A DETAILED BREAKDOWN IS ANNEXED.

(B)

THE CONSTRUCTION OF ALL. EIGHT EXISTING CONTAINER TERMINALS IN HONG KONG HAVE BEEN CARRIED OUT BY PRIVATE DEVELOPERS ON THE BASIS OF LAND GRANTS AWARDED EITHER BY PRIVATE TREATY OR THROUGH A TENDER PROCESS DEPENDING ON THE PARTICULAR CIRCUMSTANCES OF EACH CASE AT THE TIME. THESE ARRANGEMENTS HAVE PROVED VERY EFFECTIVE. TO FINANCE THIS PROJECT USING PUBLIC FUNDS IS NOT CONSIDERED TO BE COST EFFECTIVE OR FINANCIALLY SOUND AT THE MOMENT, BECAUSE IT WOULD TIE UP PUBLIC FUNDS IN A PROJECT WHICH THE PRIVATE SECTOR IS KNOWN TO BE KEENLY INTERESTED IN FINANCING, AS HAS BEEN CASES WITH ALL THE PREVIOUS TERMINALS.

THE

/Annex

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