TNAG-2413-FCO40-3515-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-fina-1992 — Page 127

INTRODUCTION

Annex B

DRAFT

An Update on the Financial Aspects of

the Airport Core Programme

HKA 182/7

Fill capy

7

2013

Since the signing of the Memorandum of Understanding concerning the

construction of the new airport in Hong Kong and related questions (the MOU), much

progress has been made in the planning and implementation of the Airport Core Programme

(ACP). More design work has been done on various projects; some of the major and more.

urgent contacts have been tendered or awarded, and the Government has completed a major

review of the scope and cost of the programme. Financial studies on the Airport and the

Airport Railway as well as negotiations with the Provisional Airport Authority (PAA) and the

Mass Transit Railway (MTRC) have also advanced, thus giving us more information on the

overall funding requirements for the ACP. This paper presents the present position on the

financial aspects of the whole ACP.

2.

Taking into account the matters contained in the MOU, the Government's

financing strategy for the ACP remains to -

(a)

keep overall costs down while achieving an efficient airport and supporting

infrastructure in the most cost-effective manner; and

(b)

keep public sector costs to the minimum by encouraging private sector

participation where this makes financial sense.