T
XCC(92)57
in respect of the undertaking to
provide debt service deficit support up to the completion of the airport in the event that the AA would be unable to service its debt after the application of all the callable equity and other resources, including the Kai Tak Surplus, available to it. Government revenues will be reduced in due course by the commitment to reduce APDT to a maximum level of $50 (in March 1991 prices) by the target opening date of the new airport.
CONSULTATION
38.
The Airport Committee, Airport Consultative Committee and the Ad Hoc Group of the Legislative Council have all been briefed on the Airport Master Plan. The Land Commission is being consulted on the terms of the airport land grant. The airlines have been consulted and the Department of Transport UK will be consulted shortly on the level of airport charging proposed.
39
On 21 March, the Board of the PAA approved the Agreement as set out in this paper.
40.
The Agreement and financial plan will now be explained to the Airport Committee and, thereafter, to the Finance Committee of the Legislative Council. It will be necessary for the Finance Committee to approve the equity funding before the PAA can award the Site Preparation Contract in May, since the PAA would otherwise not have adequate resources to meet the full financial commitment created by the award of the contract.
PUBLIC REACTION
41.
In the light of recent concerns about cost-overruns, we expect the general public and the media to welcome the news that the overall airport costs and Government funding required have not increased substantially since the last figures announced in July 1991. The announcement of the financial plan would also be well-received as another indication of "transparency" and that the airport project is progressing on schedule.
42.
On the other hand, critics would focus their attention on the need for careful cost control and close monitoring. Concerns would centre on whether Government had adequate powers to oversee the work of the PAA/AA. Reaction from the Chinese side of the Land Commission and the
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