TNAG-2140-FCO40-3059-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-1990 — Page 81

CONFIDENTIAL

HKC 182 12

RECEIVED IN RECOTRY

14

09 APR 1990

lie MAUDES

7-12APRIAISSO

VISIT OF THE SECRETARY OF STATE TO HONG KONG, 13-16 JANUARY 1996

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Port cal Airport Development

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Shat

BACKGROUND BRIEF: NEW AIRPORT PROJECT: BRITISH BUSINESS

PROSPECTS.

References+

BTC telno 267 reporting Mr Heap's discussion with Sir P Jacobs about the airport project

B BTC telno 8 about US support for commercial

efforts in Hong Kong

C

BTC zelno 10 about the shortlisting of companies

for the first airport consultancy contraet

Hong Kong Government's plans

1.

In his speech to LegCo on 11 October, the Governor announced the

decision to go ahead with plans to build a new international airport on reclaimed land at Chek Lap Kok, with the aim of opening the first

of the two runways by early 1997. When completed the new airport will be able to handle over 80 million passengers a year, over 3 times the maximum capacity of Kai Tak. In addition, the Governor also announced plans to build a high speed rail system and a six-yane highway linking North Lantau to Hong Kong Island.

2. The new airport and the road and rail links associated with it

will be the largest infrastructure project ever undertaken in Hong Kong and one of the largest projects of its kind in the world.

On a

conservative estimate the cost is expected to be some £10 billion at

current prices over the next 15 years. The Hong Kong Government believe that many of the individual projects connected with the new airport will be commercially viable and intend to seek private

sector participation for 40-60% of the total development. The

remainder will be financed by the Hong Kong Government.

ROFAIT

CONFIDENTIAL