TNAG-2146-FCO40-3065-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-1990 — Page 166

(b)

price could be obtained if the franchise to operate

crossing was sold (partly

wholly) When

the

affic revenue was clearer;

studies

the undertaking of two other project financial develop the optimum financing strategies for the airport railway and the new airport at Chek

Lap Kok; and

(c) the undertaking of an overall financial study on the

implications of implementing the chosen Port and Airport Strategy on the Government's fiscal position and on other financial issues affecting Hong Kong.

8. When the Governor announced at the opening of the 1989/90 Legislative Council Session the decision to proceed with the

airport, it was in the context of a broad strategy for both port and airport, going well into the next century. The total

cost was estimated at some $127 billion at 1989 prices over

the period up to 2006. Part of this was to come from the

private sector.

We have now refined a list of key projects which are required to meet the primary aim of having the first runway of the new airport open in 1997. These are in essence the airport itself, and the transport links (and associated

reclamation) necessary if passengers are to get to and from

that airport. Some of these projects would have been required

even without the airport. The estimated order of costs of

these key projects is at Annexes I and II.

A brief

description of the scope and location of the projects is at

Annexes III and IV.

9.

Our preliminary financing strategy in respect of these key projects assumes that

(a) the Western Harbour Crossing will be fully financed

by the private sector;