TNAG-2411-FCO40-3506-Proposed-airport-in-Macao-(Macau)-1992 — Page 37

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passengers

for and from both Macau and China. The terminal will include concessions for restaurants, shops and a casino which (along

with the cargo terminal and fuel depot) will be tendered in mid 1992.

The terminal area reclamation work has been completed and a contract signed in mid December 1991) for the runway reclamation work with China Harbour (PRDC) and Tai Fok Wah (an Edmund Ho / Ng Fok

for company)

HKD 3 billion.

the The contract for

piling underneath the

and the runway itself, was runway,

awarded to Ballast Nedam (Dutch, but owned by BAe), Construcoes Technicas (Portugal) and Condotte d'Acqua (Italy) in late 1990 but has still not been signed. Financial negotiations are said to been concluded, at much greater cost than orginally hoped, the CAM board and the Macau government has yet to approve the decision.

have but

a

This

Financing of the airport is still unclear. Original equity raised

with 1.5 billion patacas (or Hong Kong dollars), was revised estimate (1989) of a total cost of 6.5 billion. estimate will need to be substantially revised again, but meanwhile CAM has announced (December 1991) that additional funds will be raised as follows (in billions of patacas):

Equity injection

Loans

Operating propts

Bonds

0.7

(March 1992)

3. 2 (October 1992 - March 1994) 1. 1

0.36 (March 1993)

Total

5. 36

of

11

The

This formula goes against the advice of Samuel Montagu (one the financial advisers to CAM, with the Bank of

China, China Development Finance and Banco Nacional Ultramaino). likelihood now is that the private shareholders of CAM will raise equity and loans against their own companies, rather that CAM seeking loans on the international market (which would probably require guarantees from China). The Macau government's role shareholder has been made easier by the success of the first open land auction sale in the autumn of 1991. substantially more revenue than expected, and

for budgetary provision

projects, stronger financial position.

puts the

as

This together government

raised

with in

а

While China continues to state publicly its support for the project, this does not extend to financial support. The original minority state in CAM held by Chong Luen / China Union is believed to have been sold, and no other Chinese corporation ministry has shown interest in contributing equity. Senior Chinese leaders have privately indicated concern over Macau Airport's finances.

or

Meanwhile there are two major contracts still to be awarded. The project

and contract was bidded for by management

15 companies won by TAMS (USA). CAM will not however award the contract

to

/TAMS

•