TNAG-2143-FCO40-3062-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-1990 — Page 38

For decision

on 2 October 1990

THE PROBLEM

XCC (90)135 13...

Copy No.

MEMORANDUM FOR EXECUTIVE COUNCIL

LANTAU FIXED CROSSING - INVITATION FOR PROPOSALS

The Lantau

Fixed Crossing has been identified in the PADS Financial and Institutional Study (FINS) as a project suitable for privatisation. Preparatory work leading to the invitation of proposals from the private sector, including a financial viability analysis and the drafting of a Project Brief, the document which

which contains all the requirements for submission of proposals, are now complete.

2

COMMENDATION AND ADVICE SOUGHT

It is

recommended that interested consortia be invited to submit "build, operate and transfer" (BOT) proposals for the Lantau Fixed Crossing (LFC) based on the requirements contained in the Project Brief.

be asked to advise whether this

Members Will

recommendation should be approved.

A

BACKGROUND AND ARGUMENT The Project

4

LFC comprises road and rail links connecting Tsing Chau Tsai at Lantau, across Ma Wan, with north-west Tsing Yi. The road and rail will be carried on two suspension bridges across the Ma Wan and Kap Shui Mun Channels. A plan showing the Project Area is at Annex A.

Although

Government nas successiully privatised three tunnels in the past two decades, LFC is a different project in terms of its size and complexity and requires a different approach to its privatisation. LFC will attract mainly international consortia, some of which may not have invested heavily in Hong Kong before. This is borne out by the response to the call for expressions of interest carried out in March 1990. Unlike most BOT transport projects in the world which provide links between established communities and business centres, LFC will be built to support new developments on а "green-field site". Hence, the risks and uncertainties associated with the new airport and developments on Lantau which will affect the likely patronage of LFC will need to be addressed

Government during the course of privatisation.

by

CONFIDENTIAL