TNAG-2146-FCO40-3065-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-1990 — Page 169

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

- 7.

pretty

Peeble

The recares will be almort depleted!

17.

basis of

interest, we

conservative assumptions about future land sales and

estimate that the Land Fund will have a balance of over $70 billion (at present day prices) by March 1997.

projects,

we

draw at all

of our fiscal

15. In our financing strategy for the new airport and related have assumed that Hong Kong Government will not

on the Land Fund. We will, however, draw on some reserves in the few years of projected budgetary deficits when capital expenditure on these projects is at a peak.

16.

There will be considerable revenue arising from the airport projects, including

-

(a) revenue going to Government direct : There will be

revenue from the Lantau Fixed Crossing tolls and/or

from sale of the Crossing, as well as tolls from

other roads such as Route 3. In addition, there will

be potential revenue of nearly $40 billion (at

present day prices) from land sales at East Kowloon

(upon the closure of Kai Tak airport), West Kowloon (land formed by reclamation) and North Lantau (along the approaches to the new airport) made possible as

a result of the implementation of the airport

programme; and

(b)

The

airport

revenue going to Government indirectly: This takes

the form of dividend available to the Government as

the shareholder of the Airport Authority and the

airport railway, as their revenues reach a level

which enables them to more than service their debt.

Government would not have proceeded with the new and related projects if it did not believe that doing

clearly within Hong Kong's financial capacity and that

long-term prosperity

economic growth are contingent

SO was

the

and

1

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