TNAG-1836-FCO40-2611-Executive-Council-of-Hong-Kong-memoranda-and-minutes-of-meet-1989 — Page 12

Members are asked to note that the principal elements of each Recommended Strategy would satisfy projected needs up to 2006. Beyond that point, there is а greater degree of uncertainty over the best use for areas identified as having potential for a range of port facilities. Such areas are shown with dotted outlines on the plans at Annexes B, C and D. They will need to be kept "in reserve" until such time as a clearer appreciation has been developed as to their most appropriate

use.

27

For each Recommended Strategy, the broad orders of capital costs over the period 1989 - 2006 are as follows

Major Element

-

Strategy A Strategy B Strategy C

(Present Values @ 1988 prices)

HK$ Million

(a) Airport

Main Works

60*

16020

21427

- Tenant

Facilities

5307

4995

(b)

Port Facilities

28512

28796

27402

(c)

Other Urban

Development

5105

7320

5315

(d) Transport

Infrastructure

4690

16378

17711

(e)

Sewage & Water

Supplies

1665

2037

1773

(£) Total

40032

75858

78617

* Replacement Equipment

Note 1:

These

Note 2 :

estimates

include resumption

detailed

and

compensation costs, allowances for the costs

of planning,

design,

site

investigation and supervision of works. A real discount rate of 4% p.a. has been assumed.

The difference in the earliest airport commissioning date for Strategies B and C is about 2 years. Since the major construction works for Strategy C are spaced over a longer period of time, this reduces the difference in the discounted capital costs between the two strategies.