TNAG-2146-FCO40-3065-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-1990 — Page 17

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Question 29: Mr Gledhill said the estimate is from the original cost? (tape unclear at this point). From calculation, the figure should be 65 but now it is $79 Billion. So it has gone up by about $14 Billion.

Mr Macleod: You can't compare them. I think Mr Gledhill was trying to make a rather similar point to the one we are making. So one shouldn't be mesmerised by the figures which is based on a whole lot of projects which stretch up to 2006. We entirely agree with that and no, I don't know how he produced his list but I know how we produced our's based on what I said. It is what is required to get the first runway operational and to get people to and from it.

Question 30: Is it going to cost more based on that figure?

(tape unclear)

Mr. Macleod: There isn't any simple yes or no answer to that question.

Question 31: If you include the airport railway as well as the allowance for contingency what will be the figure?

Mr Macleod: Airport railway, we .

..... (tape unclear) as we said because we have yet to take the decision on the timing so the answer would be a bit difficult because I don't know how much it will be before 1997 & how much will be after. Have we issued any figure on the railway?

Miss Yue: The Airport Railway, roughly, is about 14 to 15 billion dollars - at today's prices. If you are talking about contingencies, it is really anybody's guess. Because what percentage do you allow for contingencies? If you apply ten per cent as contingency then I think you can multiply the 70 billion dollars by 10 per cent and that gives you 7.9 billion.

If you want to apply 15 per cent as contingency, then the figure goes up. So, it depends upon peoples' judgement on what sort of contingency is required.

Mr Macleod: Just to clarify on the railway. Don't forget please that whatever the figure, exactly, may be, a lot of that will not be government expenditure. That will be met by a mix of government equity injection into the MTRC, assuming it is the MTRC, and then the MTRC will borrow a proportion of the cost as it has done very successfully in the past. Please don't think that is added to our bill. Part of that will be added to our bill.