TNAG-2251-FCO40-3235-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-fina-1991 — Page 136

6.

The financial

assessment of the Lantau Fixed Crossing was completed late last year on the basis of which the Government decided that it would be more reliable, and probably cheaper overall, to build the Lantau Fixed Crossing as a

Government project rather than as a privatised one. The

Government may, however, sell a franchise to operate the crossing (partly or wholly) at or near the time of completion of the works. This approach is expected to allow the Government to obtain a better price as many of the uncertainties relating to traffic projections, the progress of and interfacing with other related ACP projects, and the timing of the proposed port development in North Lantau would be removed.

7.

The financial assessment on the Airport Railway was completed early this year. It indicated that the prospective operator, the Mass Transit Railway Corporation, would require some financial support, such as additional equity from the if the Airport Railway is to be commissioned at the the airport. The amount of equity injection may, minimised .if the commissioning of the Airport

Government,

few years. A transport and

the Government's Consultants

same time as

however, be

Railway is deferred for a

engineering study conducted by indicates that in the event of deferral, there is a period of about three years from the commissioning of the airport when the traffic build-up can still be adequately accomodated by

the Lantau

Crossing alone. However, a deferral will accentuate the congestion along the Nathan Road corridor. In addition, land premia will be less in Lantau and the operation of the airport and businesses in it may be adversely affected.

highway via

Fixed