TNAG-2141-FCO40-3060-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-1990 — Page 45

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fransport infrastructure

Road and rail transport links to the new airport are obviously requi H and a fixed crossing to Lantau Island will be needed to carry such links. The total estimated (1989) cost of all

transport infrastructure is HK$27 billion. Of this we expect 50% will be provided by

by private sector investment, leaving a Government share of about HK$13.5 billion.

5. Lantau Urban Development

The Government will be responsible

infrastructure for

providing the

industrial areas

This, like the

leet de-and

for creating the land and residential, ccanercial and

on Lantau at an estimated cost of $15 billion. port, will be incremental development phased to

Overall cost in relation to HKG's financial position

The Hong Kong Government has always pursued a cautious and prudent fiscal policy. If HKG

thought the costs of a

development project were becoming unmanageable, they would, of course, be re-examined.

for Hong Kong

The preceding review indicates total potential expenditure Government of about HK$50 billion, over a period This can be compared to current reserves of over excluding the SARG Land Fund, which currently $20 billion. The Government will not, of

ci 15 years.

EKS72 billion,

stands at abcut

course, pay for its share simply by spending its reserves but will maximise the a cunt derived from general revenue and external sources (e.g. lcans) in order to maintain the reserves at a prudent loval

Economic Services Branch

Government Secretariat

ESB CR 8/961/20

Maude

3 July 1990

CONFIDENTIAL

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