TNAG-2142-FCO40-3061-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-1990 — Page 83

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7.

Airport Railway : MTRC has been invited to build

and operate. Engineering feasibility study to start early

1990 to be followed by financial study.

8.

North Lantau Expressway : dual 3-lane. Design

review to update work done in 1982 is in hand.

Costs and Funding

9.

At 1989 prices and to cope with demand up to

2006, cost is estimated at HK$127 billion (port $50 billion, airport $35 billion, transport $27 billion, Lantau development and utilities $15 billion). Expenditure to be

spread over a number of

of years. Benefits from releasing

land on which Kai Tak stands and relaxation of development

restrictions on rest of Kowloon need also to be borne in

mind. Between 40% and 60% of costs could be met by private

sector.

Inflationary Impact

10.

PADS, taken with other major private and public

sector developments, will put heavy pressure on construction industry. Will lead to upward pressure on

construction costs, labour costs and, in due course, this

may spread to other sectors. Careful phasing will help minimize these pressures. Selective importation of labour may be necessary in peak years of activity.

Why Chek Lap Kok Strategy?

11.

Chosen from over 40 potential strategies because

(a) Cheaper (by 20%) and quicker to build than main

alternative site in Western Harbour;