XN000022-1995-06-30 — Page 7

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"Agreement on the airport cargo service franchises clears the way for early provision of one of the most critical privately-funded franchises for the new airport," said the Secretary for Economic Services, Mr Gordon Siu.

"The next step now is to move ahead quickly with the remaining major franchises for the airport and the enactment of the AA Ordinance. With early resolution of these issues, we will be able to maintain the good progress we have made on the construction of the new airport," Sir Hamish said.

He said in the light of this, the Government had in consultation with the MTRC and Provisional Airport Authority (PAA) reviewed the target opening dates for the two projects.

"Based on their current programme of works already under way, we anticipate that the PAA's physical works at the new airport will be substantially complete by mid-1997. We need to allow nine months for commissioning, trial operations, and planning the move from Kai Tak. We therefore expect the new airport to be open in April 1998, subject to early conclusion of the remaining key franchise agreements. These include aviation fuel services, aircraft maintenance, aircraft catering and ramp handling services.

"According to the MTRC's programme, the airport railway works will be substantially completed in April 1998, with opening scheduled in June 1998 after a period of tests and trial running. However the MTRC has a good track record of completing projects ahead of schedule. We are therefore confident that the corporation will make every endeavour to open the railway earlier with a view to synchronising the opening dates of the two projects as far as possible," he said.

Physical works on the 10 Airport Core Programme projects are moving ahead very rapidly. Overall, including the airport and the airport railway, over one-third of the works has been completed.

"The agreement with the Chinese is a major step forward as it now gives the Government the green light to sign a Financial Support Agreement on the airport 1 railway with the MTRC," Sir Hamish said.

"The Provisional Airport Authority will be reconstituted as the AA following enactment of the Airport Authority Bill by the Legislative Council. Subject to the approval of Finance Committee of the Legislative Council, the Government will then be able to sign the Financial Support Agreement on the airport with the AA," he added.