TNAG-2141-FCO40-3060-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-1990 — Page 59

CONFIDENTIAL

Transport 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 t

Sansport infrastructure is HK$ 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 providing the infrastructure for residential, commercial and

industrial areas on Lantau at an estimated cost of

This, like the port, will be incremental development phased to

meet demand

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.

The preceding review indicates total potential expenditure-

Hong Kong Government of about HK$50 bilion, over a period

This can be compared to current reserves of over

HK$72 billion, excluding the SARG Land Fund, which currently stands at about $20 billion. The Government will not, of

years.

course, pay for its share simply by spending its reserves but

will naximise the amount derived from general revenue and

external sources (e.g. loans) in order to maintain the reserves

at a prudent loval

Economic Services Branch

Government Secretariat

ESB CR 8/951/20

Haude

3 July 1990

CONFIDENTIAL

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