TNAG-2413-FCO40-3515-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-fina-1992 — Page 38

GUVLICAT MUSAL

INSIRI,

(b) the AA

would be expected to borrow funds on

a

basis non-recourse

without (i.e.

Government

guarantee);

(c) the new

return on

airport should provide a long term

investment similar to the target at

Kai Tak (i.e. about 15%);

(d) the

of level

aeronautical charges

at

the

target date for opening the new airport could

be assumed to be up to three times higher, in

real terms, than in July 1989, but no higher.

(e) revenues from

aeronautical charges

could be

assumed to have increased by three times, in

real terms

(TRM 3) on the opening

of the

airport, but no higher.

The

Government also provided guidance on the assumptions to

be made in relation to general inflation and increases in

building

project.

and

labour

costs

throughout

the life of the