be
progressively refined
ag engineering and studies into airport development progress.
financial
As much as 70% of
the costs could be financed by the private sector. On a debt : equity ratio of 3:1 we calculate that the airport will have a rate of return on equity of about 20%. This should make it attractive to private sector investors. The Airport Authority, a statutory body separate from Government, will have the responsibility for financing and developing the airport. It will also run the airport except for certain key functions such as air traffic control which will remain under Government control.
3.
The Port
(i)
Need for a site for port expansion
Once container Terminals 8 and 9 on Stonecutters and Tsing Yi Islands have been completed, the best way to cope with forecast port traffic growth is to develop new facilities on Lantau Unlike the airport, these facilities will be developed
Island.
incrementally in response to demand.
(ii)
Cost and Financing of new port facilitiog
The
estimated
(1989) cost of full development is HK$50 billion. But, of this, 80% should be taken up by the private sector. There ig пс risk Of
over commitment on the Government's part because if the dezand is not there, the facilities can not be expanded :
the demand is there, they
will be privately financed, built and operated as all Container Terminals in Hong Kong have been SC far.
commercially very
successful. Many back Up facilities (e.g. container lorry parking and
and stacking) are also provided by the private sector.
This would continue to be so in any new facilities. Government would, however, need to provide for certain elements such as break-waters, typhoon shelters, dredging and navigational aide
They have
been
These could require a tulal expenditure of about HK$10 billion.
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