XN000022-1994-11-17 — Page 7

THURSDAY, NOVEMBER 17, 1994

GOVERNMENT WELCOMES LAND COMMISSION AGREEMENT

ON AIRPORT AND AIRPORT RAILWAY LAND

THE FINANCIAL SECRETARY, SIR HAMISH MACLEOD, TODAY (THURSDAY) WELCOMED THE AGREEMENT REACHED BY THE SINO BRITISH LAND COMMISSION ON ARRANGEMENTS FOR LAND REQUIRED FOR THE NEW AIRPORT AT CHEK LAP KOK AND THE AIRPORT RAILWAY.

SIR HAMISH SAID: "TODAY'S LAND COMMISSION AGREEMENT ON THE AIRPORT AND AIRPORT RAILWAY LAND IS ANOTHER IMPORTANT STEP FORWARD FOR THESE TWO MAJOR PROJECTS.

"IT FOLLOWS ON FROM THE SIGNING ON NOVEMBER 4 OF THE AIRPORT COMMITTEE'S AGREED MINUTE ON FINANCING AND WILL HELP TO BUILD UP THE MOMENTUM OF THE PROJECTS.

"THE AGREEMENT PROVIDES THE LAND NEEDED FOR THE PROJECTS. IT ALSO PAVES THE WAY FOR THE LAND PREMIA FROM PROPERTY DEVELOPMENTS ASSOCIATED WITH THE AIRPORT RAILWAY, WHICH WILL FINANCE $20 BILLION OUT OF THE GOVERNMENT'S $60.3 BILLION EQUITY CONTRIBUTION TO THE AIRPORT AND AIRPORT RAILWAY.

"THIS $20 BILLION WILL COME FROM THE TOTAL NET PREMIA RECEIVED THE GOVERNMENT, AFTER DEDUCTING THE LAND PRODUCTION COSTS AND THE SHARE FOR THE SAR LAND FUND.

BY

"THE

AR-RELATED PROPERTY DEVELOPMENTS AT THE AR STATIONS WILL ALSO BE A MAJOR SOURCE OF HOUSING SUPPLY BECAUSE THEY WILL BRING ABOUT 24,000 UNITS INTO THE PROPERTY MARKET BETWEEN 1997-98 AND 2003-04.

NOW NEED TO CONTINUE THE PROGRESS THAT HAS BEEN MADE WITH THE CHINESE SIDE ON THE TWO PROJECTS' FINANCIAL SUPPORT AGREEMENTS SO THAT THESE CAN ALSO GO AHEAD, TOGETHER 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 THE PROJECTS, SAID SIR HAMISH.

I

A GOVERNMENT SPOKESMAN SAID THE AGREEMENT LAID DOWN THE ARRANGEMENTS FOR LAND TO BE ALLOCATED TO THE PROVISIONAL AIRPORT AUTHORITY AND THE MASS TRANSIT RAILWAY CORPORATION THROUGH THE ANNUAL LAND DISPOSAL PROGRAMMES.

A TIME-TABLE HAD BEEN SET FOR THE LAND TO BE INCLUDED IN ANNUAL PROGRAMMES BETWEEN THE CURRENT YEAR AND 1996/97.

THE

THE ANNUAL PROGRAMMES WOULD ALSO TAKE ACCOUNT OF THE NEEDS OF THE AR PROPERTY DEVELOPMENTS, AND THE PREVAILING SUPPLY AND DEMAND CONDITIONS IN THE PROPERTY MARKET AT THE TIME.

THE SPOKESMAN SAID: "THIS WILL ENSURE THAT THE LAND FOR THE AIRPORT AND AIRPORT RAILWAY BECOMES AVAILABLE AS AND WHEN IT IS NEEDED. IT ALSO ENSURES THAT THE SUPPLY OF LAND IS COMMENSURATE WITH HONG KONG'S OVERALL LAND REQUIREMENTS.

**THIS PROCEDURE HAS BEEN STARTED BY THE TWO SIDES OF THE LAND COMMISSION AGREEING TODAY TO ADJUST THE 1994/95 LAND DISPOSAL PROGRAMME TO MEET THE REQUIREMENTS OF THE AIRPORT AND

AIRPORT

RAILWAY",

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