TNAG-2251-FCO40-3235-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-fina-1991 — Page 138

(b) services

- 5

to be provided directly by the

Government, such as airport traffic control, will

funded by the Government in the form of public

works items; and

be

11.

(c)

of the airfield,

bulk of the passenger

the PAA/AA will fund all other works (e.g. site preparation, construction

runway, taxiways and the

terminals) partly with Government equity and partly from borrowings.

the assistance

of

Based on these assumptions, the Government financial

consultants have indicated that the total equity likely to be required from the Government would be in the region of $13.8

billion (in March 1991 prices) in the event of a "worst case"

scenario which might include a combination of cost overruns,"

lower than expected real estates revenues, and lower than

expected traffic growth after opening of the airport. In a more

likely scenario, the equity required would be below this

figure.

12.

A financial consultancy study will soon be

commissioned to affirm the commercial viability of the Western Harbour Crossing and to assist the Government in drawing up the preferred privatisation package for this project on a build,

operate and transfer arrangement, along the lines of Tate's Cairn Tunnel and Eastern Harbour Crossing.

13.

the

While a detailed financing strategy will have to await completion of the financial studies on the new airport and the Western Harbour Crossing and the outcome of negotiations with the MTRC and the PAA/AA, the present indications are that the ACP will be

funded

along

the following

lines: