TNAG-2141-FCO40-3060-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-1990 — Page 54

4.

fransport infrastructure

Road and rail transport links to the new airport are obviously required 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 private sector investment, leaving a Government share of about HK$13:5 billion.

5. Lantau Urban Development

The

Government

will be responsible for creating the land and infrastructure for residential, commercial and

providing the

industrial areas

This, like the

leet demand

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 cauticus and prudent fiscal policy. If HKG thought the costs of a development project were becoming unmanageable, they would, of

course, be re-examined.

The

for Hong

of 15 years.

preceding review indicates total potential expenditure

Kong Kong Government of about HK$50 billion, over a period This can be compared to current reserves of over HKS72 billion, excluding the SARG Land Fund, which currently stands at about $20 billion. The Government will not, of

course, pay for its

share simply by spending its reserves but will maximise the a cunt derived frca general revenue and external sources (e.g. loans) in order to maintain the reserves

at a prudent laval

Economic Services Branch

Government Secretariat

ES3 CR 8/951/80

Maude

3 July 1990

CONFIDENTIAL