TNAG-1748-FCO40-2467-Visit-by-Sir-Geoffrey-Howe--Secretary-of-State-for-Foreign-a-1988 — Page 174

PRIVATE SECTOR

CONFIDENTIAL

4.

Many of the most important infrastrucutral projects are being constructed by the private sector. They include:

(a) container terminal number 6 in Kwai Chung is being built

by Hong Kong International Terminals (HIT) at a cost of

dollars 2.5 billion. Expected completion date is mid-1989. A

tender for the adjoining terminal was awarded in April 1988, also to HIT, at a premium of dollars 4.4 billion. Construction is expected

to start in about mid-1988 and to be completed in mid-1991;

(b) the Eastern Cross Harbour Tunnel is being constructed by a

consortium comprising Japanese, Chinese, British and local interests

at a cost of more than dollars 3 billion. Completion is expected in

October 1989;

(c)

the Tate's Cairn Tunnel linking Sha Tin and East Kowloon will be constructed by a consortium also comprising Japanese,

Chinese, British and local interests at a cost of some

dollars 1.9 billion. It is expected to start in July 1988 and

be completed in mid-1991;

(d) the Kowloon Canton Railway Corporation is planning to expand its railway freight yard in Hung Hom to cater for the increased freight demand up to the turn of the century. This will

involve 18 hectares of land;

(e) the Land Development Corporation was set up in January 1988 to undertake and promote comprehensive redevelopment of parts

of the older urban areas. It will commence four redevelopment

schemes by the end of 1988.

FORWARD PLANNING

5. The following are the principal planning studies now being

undertaken:

(a)

the port and airport development study, which began in

CONFIDENTIAL