TNAG-2413-FCO40-3515-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-fina-1992 — Page 81

HANDEDOVEN

UPDATE ON THE FINANCIAL ASPECTS

OF THE AIRPORT CORE PROGRAMME

SPEAKING NOTE

7/900)

27,392

CC N WHITNEY CAB

M SENE HUD JROGAN PERING

I am pleased to be able to hand over to the Chinese side an

information paper on the updated position on the financial

aspects of the whole Airport Core Programme. This paper covers

the revised costs of the whole programme and the individual

component projects, as well as the apportionment of funding

between Government and the private sector. This latest set of

figures is the result of nine months of careful review and

substantial progress in the design and implementation of

projects. They also reflect the financial arrangements that we

propose for the Airport Railway and the Airport. I hope to be in

a position to hand over to you a paper on the details of the

proposed financial arrangement of the Airport Authority early

next week.

The paper on the updated financial position is fairly

straight-forward. Perhaps I should just highlight a few points

now.

First, despite an overall increase in the ACP cost from

$98.6 billion to $112.2 billion, the cost to be borne by the

Government in the form of capital expenditure and equity

investment has remained at the same level, ie $59.3 billion at

March 1991 prices, as shown below: