TNAG-2146-FCO40-3065-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-1990 — Page 88

CONFIDENTIAL

position and on other financial issues affect-

ng 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 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 facilitiac

PORT DEVELOPMENT AND OTHER

CAPITAL EXPENDITURE

пла

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 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 3944

aa :/.

J. -PT QR.

YH

רובר

ааа