TNAG-2146-FCO40-3065-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-1990 — Page 161

For decision

CONFIDENTIAL

on 4 December 1990

HKC 182/2

XCC (90) 174 30

Copy No.

MEMORANDUM FOR EXECUTIVE COUNCIL

THE FINANCIAL ASPECTS

OF THE NEW AIRPORT AND RELATED PROJECTS

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THE PROBLEM

At the briefing on the Airport Core Programme and the Long Range Forecast held on 20 November 1990, Members ADVISED and the Governor ORDERED that the Council's advice should be sought on the publicity/public relations arrangements to be adopted prior to the release to the public of information on the Airport Core Programme, in particular on its financial aspects. Information on the financial aspects of the new airport and related projects has now been put together in a briefing paper and summarised in a press release.

RECOMMENDATION AND ADVICE SOUGHT

2

It is recommended that the attached briefing paper on financial aspects of the new airport and related projects and press release be issued to the Legislative Council Ad Hoc Group on PADS and the media on the afternoon of 4 December 1990.

3

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

A

BACKGROUND AND ARGUMENT

4

At

a meeting held in October 1990 with the Legislative Council Ad Hoc Group on PADS, we undertook to provide a briefing to the Group on the financial aspects of the airport and related projects. A paper on this subject has now been prepared and is attached at Annex A. It briefly summarises the latest order of costs for those key projects necessary to open the first runway of the new airport in 1997, the Administration's broad financing strategy which envisages that а substantial part of the costs will be private-sector funded, the considerable potential revenue from these projects, and the strong fiscal position to be inherited by the Special Administrative Region Government when it comes into being. It should be noted that the costs of these key projects are anyway becoming known through the normal procedures for obtaining approval to include these projects in the draft Estimates for 1991-92.

CONFIDENTIAL