XN000022-1996-11-11 — Page 6

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Speaking at a special briefing of the Airport Consultative Committee, he told members that as a result of these savings the overall cost estimate for the 10 projects in the Airport Core Programme had been reduced from $158,169 million to $156,364 million.

This is the second time that the ACP budget has been reduced. In January 1994 the ACP budget was cut from $163,730 million to $158,169 million mainly because of savings arising from government contracts being awarded below the original estimates.

"Many major infrastructure projects overseas have been hit by massive cost over-runs. It is therefore a major achievement on one of the world's largest infrastructure projects that we have been able to reduce costs and to have done it twice.

"The savings were achieved as a result of the strenuous efforts by all concerned, in particular the staff of the works agents, to control costs," Mr Lam said.

The bulk of the savings have been identified in the Lantau Link, Route 3 and West Kowloon Reclamation projects while some savings have also been achieved from various utility and other works.

As at the end of September, the Government's ACP projects were 91 per cent complete while overall, including the airport, airport railway and the Western Harbour Crossing, the ACP was about 68 per cent complete.

Mr Lam said the seven projects funded directly by the Government and the Western Harbour Crossing would be completed before June 30, 1997, save for a few minor works items.

The airport and the airport railway are on target for completion in April and June 1998 respectively. Some of these works will straddle mid-1997 because work has been rescheduled in order to better tie in with the airport and airport railway which are scheduled to open in April and June 1998 respectively.

He said that although these minor works would not be completed by mid-1997. they would not in any way affect the opening and operation of the 34-kilometre long transport corridor from Central to the new airport at Chek Lap Kok and the new town at Tung Chung.

He said provision had been made within the overall ACP budget to meet expenditure on these minor works.