TNAG-2145-FCO40-3064-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-1990 — Page 80

For decision

CONFIDENTIAL

HKC 182

on 20 November 1990

|2

XCC (90) 164 Copy No.

THE PROBLEM

On

2 NOV 1990

MEMORANDUM FOR EXECUTIVE COUNCIL

LANTAU FIXED CROSSING IMPLEMENTATION

-

PADS 11k pl.

32.

(263

Mr Paul Miss Marsden

Mr

Kuryent

Pa INterating.

2 October 1990 the Council ADVISED and the Governor ORDERED that the Lantau Fixed Crossing project should be implemented using Government funds.

The Council also requested that the financial implications be re-assessed, including the option of equity participation by the private This memorandum seeks further guidance from the Council on the financial aspects of the project and informs Members of the implementation arrangements.

sector.

269

RECOMMENDATION AND ADVICE SOUGHT

2

It is recommended that private sector equity participation should not be invited for the Lantau Fixed Crossing at this stage because of the difficulties and time required in setting up the suitable legal and financial structure to accept such equity.

3

Members will be asked to advise whether this recommendation should be approved.

4

Members will also be invited to note the arrangements for construction of the Lantau Fixed Crossing; to be carried out as five separate contracts.

BACKGROUND AND ARGUMENT

Implementation Arrangements Split of Contracts

5

contracts.

has

The project will now be implemented as five separate In drawing up the contract split, consideration been given to the size of each contract, the requirement for specialist skills and experience and the different types of construction involved, SO as to encourage as much competitive bidding as possible. Care has been taken not to create serious problems of interface, or to adversely reduce economy of scale by having too many contracts.

CONFIDENTIAL