TNAG-2251-FCO40-3235-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-fina-1991 — Page 60

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CONFIDENTIAL

24

HKB 182/1

-6 SEP 1989

FROM: M Stone'

Hong Kong Department

DATE: 6 September 1991

cc: Mr Burns

Mr Ricketts, HKD

who takes this forward with the

Ps/Lord Caithness für me interested,

How do HR solve An traffic control HONG KONG AIRPORT PROJECT: COSTS They said they had this

The Private factor

organized. Is there

Is there a role for us?

१

in 130% of the platform 1. You asked on a copy of BTC Hong Kong telno otter 169 to

Kong telno otter 169 to arpat

2

the DTI how the latest figures for the Hong Kong airport & equipment.

Is this in live with

platform compared with earlier estimates.

2.

prenons figures?

Hong Kong telno 2272 set out how the costs of the

airport core programme had changed since 1990. This shows that the cost for the airport has gone up from HK$37.8 bn to

HK$43.6 bn, an increase of 15%. But the cost of the overall

programme has only gone up by 1.6%, from HK$97 bn to HK$98.6 bn.

3. We have not asked Hong Kong to explain in detail the reason why the cost of the airport platform development has increased faster than inflation. The Hong Kong Government had always cautioned that these were of necessity fairly rough figures. One main reason for the increase is likely to be the decision to have a runway separation of 1525 metres and a platform of 1275 hectares. In the December 1990 briefing for LegCo, a 1000 hectare site was envisaged and the runway separation had not been decided. The cost

then envisaged was HK$37.8 bn.

Michl ustare.

M Stone

RODAID/1

TG

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