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Hong Kong international airport will be able to handle 80 million passengers a year, more than three times Kai Tak's maximum capacity. Moreover, the Shenzhen airport will be 85
kilometres from the Central districts of Hong Kong. There
is no rail link or high speed road link at present and the journey to Hong Kong by jetfoil would take 50 minutes.
(ii) Site for a new airport
The site for the new Hong Kong international airport at Chep Lap Kok was chosen after exhaustive consideration of the various options, based on expert advice and detailed studies conducted over the past 17 years. Some 30 possible sites were looked at over this period, including sites in the Western Harbour and Deep Bay, which were examined in detail. These studies demonstrate that Chek Lap Kok is the
best choice.
(iii) Cost and financing of the new airport
The cost of the new airport is estimated to be some HK$35 billion at 1989 prices. On a debt: equity ratio of 3:1, the Hong Kong Government calculate that the airport will provide a rate of return on equity of about 20%. This should make it attractive to private sector investors and it is anticipated that as much as 70% of the costs may be financed by the private sector. The financing, construction and management of the airport will be put in the hands of the new Airport Authority, a statutory body separate from the Hong Kong Government, although the latter will remain responsible for certain key functions such as air traffic
control.
The British Government have studied the financial consultancy reports and are satisfied that the financial plans are viable. We believe that the Hong Kong Government
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