TNAG-2146-FCO40-3065-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-1990 — Page 190

CONFIDENTIAL

position and on other financial issues affect-

ing Hong Kong.

8. When the Governor announced at the

opening of die 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

esimated 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;

(b) a substantial part of the cost of the Chek Lap Kok airport will be funded from

the private sector, mainly through loans to

the Airport Authority. and through private

sector investment in major tenant facilities such as air cargo terminals and aircraft

maintenance facilitiar

PORT DEVELOPMENT AND OTHER

CAPITAL EXPENDITURE

10.

As noted in para & above, the key projects necessary for the opening of the

first runway do not include any port project.

This, however, does not mean that por

development will not be proceeded with or

that no Government funds will be made

available for this purpose in the years ahead.

In so far as financing is concerned, the

Government expects that the private sector

will continue to finance, build and operate

new container terminals as was done for the

existing seven terminals. The Government

also expects the future multi-purpose termi.

nals to be financed by the private sector.

The Government will continue with the

existing arrangement of providing essential support facilities such as the provision of breakwaters, dredging of navigation chan-

nels, provision of back-up areas for con-

tainer/multi-purpose terminal operation and

anchor buoys for ships. These works will be

carried out as part of the Government's on-

going public works programme.

11.

CONFIDENTIAL

While priority will be given to the

90 39H

aa:/. J. -PI QA.

ун

2900H T209 йаа