TNAG-2412-FCO40-3507-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-pres-1992 — Page 71

CRITICAL PATH FOR CHINESE AGREEMENT

Main features

*

*

Finance Committee (FC) approval for equity in the PAA of HK$6,550 million. (Adding in equity approved in 1990, this makes a total of HK$7,330 million.)

The

HK$10,000

million.

PAA's first major contract, for site formation, is expected to cost about They cannot let the without more equity, and the contract cannot be broken down and phased without serious additional delays.

contract

was

In addition, FC set down a condition to their July 1991 approval that only HK$370 million

for PAA's operational spending. This amount is expected to be exhausted by the end of July, and PAA will have to approach FC for more money.

FC's

is

in

last meeting before the summer recess on 24 July. (We might be able to slip special meetings up to 31 July : if we try later than that, we risk being accused slipping important business past them when most members are away.) The next meeting is not until October

of

То approach FC

for funding before agreement with the Chinese would provoke the Chinese. The first FC meeting after the recess would be in mid-October too late.

-

much

A major site formation contract, Central and Wanchai Reclamation Phase 1, must start at the beginning of September if the HK terminus of the Airport Railway is to start operation in mid-1997. To award a contract by then, tenders should already have been invited on 4 May. We pre-qualified tenderers.

have

Critical path: P. 1 of 2