•
£ million
(i) Runway extension
6.08
(ii) Extension of apron parking area
and taxiway modification
1.65
(iii)
Terminal building expansion
2.56
(iv) New air-cargo complex
2.75
(v) Improvements to ATC system
0.66
£13.70
The Hong Kong Government's Application for Assistance
4. The Hong Kong Government has asked for a loan from HMG to
finance the runway extension (estimated cost £6.08 million) on
favourable terms to be negotiated, in recognition of the United
Kingdom's own aviation interest in the projected development. The remaining improvements (estimated cost £7.62 million) the Hong Kong
Government proposes to finance from its own resources. It has also
asked for a grant from C.D. and W. funds totalling about £ million
towards the cost of improvements to the air traffic control system.
5. The following factors are relevant to the terms of the loan
sought. The operation and development of the airport is to be self-
financing, landing fees and passenger charges being adjusted
accordingly. The "profitability forecast" is based on repayment of
the cost of the projected development over fifteen years at 7% p.a.
interest.
Grounds of Application
6. When the application for a loan was first presented in 1968
(there had been a previous application for a grant which the
Commonwealth Office persuaded the Hong Kong Government to withdraw)
it seemed that Hong Kong was entering a period of deficit budgets.
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