TNAG-2143-FCO40-3062-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-1990 — Page 74

1990-10-05 17:27 G.1.5

in coming

to a decision on how the project should

be bandled we have reviewed all the options open to us and

have

straightforward

Construction Contract

decided

On

approach.

There are a number of reasons for adopting this

approach rather than the

"build operate transter"

(BOT)

option. I would like to take you through them.

the fixed

project.

crossing

First of all there is certainty. It is clear thal

is the key to the success of the whole

The Construction Contract approach provides

certainty in Lerms of planning, completion and operation.

and furthermore allows us to start construction six to nine

months ahead of a BOT project. Although several

have already indicated their willingness to participate in

BOT. going down thia route would

protracted negotiations and thus a period of uncertainty

stretching through most. of 1991.

question

of

what these

return.

consortia

consortia

inevitably involve

There is also Lhe

would have wanted in

project.

This brings me to the question of financing the

Having studied all aspects very carefully over

considerable period, We have concluded Chat there is a

greater advantage in funding

clearly we would also wish to consider financial packages

put forward by bidders in response to the construction

the project ourselves.

But

Lender

exercis.