TNAG-2413-FCO40-3515-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-fina-1992 — Page 111

For decision on

24 March 1992

CONFIDENTIAL

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07 APR 1992

XCC(92)58 Copy No. 32

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MEMORANDUM FOR EXECUTIVE COUNCIL

AN UPDATE ON THE FINANCIAL ASPECTS OF THE AIRPORT CORE PROGRAMME

THE PROBLEM

Following a thorough review of the cost of the Airport Core Programme (ACP), the Government needs to inform the Chinese Side, Members of the Legislative Council and the public of the latest position.

RECOMMENDATION AND ADVICE SOUGHT

2

It is recommended that -

A

(a)

(b)

the Chinese Side be informed of the most recent estimate of the cost of the ACP on the basis of the note at the Annex A; and

if the Chinese side does not object, the Administration should brief the LegCo Ad Hoc group on the ACP on the up-dated cost estimates, stressing the fact that

(i)

The direct cost of the ACP to the Government has not increased.

(ii) The new estimates are based on a much higher level of knowledge than those in July 1991, and we have greater confidence in them.

(iii) The Administration has instituted rigorous

project cost control procedures; but

(iv) Figures are bound to change slightly in future.

(v) The Government has adequate reserves to meet

these costs.

Executive Council

12