New Airport costs revised
The overall cost estimate for Hong Kong's replacement airport at Chek Lap Kok has risen by 13.8 per cent to HK$112.2 billion (US$14.4 billion). Despite this, the government says the cost to be borne by the public sector for the 10 airport core projects (ACP) has remained constant at HK$59.3 billion (US$7.6 billion).
The major cost-component of the programme, the airport itself, has increased by HK$1.5 billion (US$192 million) to HK$46.3 billion (US$5.9 billion), while the estimate for the airport railway has risen by 77 per cent to HK$22.1 billion (US$2.8 billion), following design modifications and the inclusion of other works.
Package for Airport Railway
The government has outlined a four-point package of support to enable the Mass Transit Railway Corporation (MTRC) to finance the construction of the airport railway - a key component of the new airport core programme. The package includes: foregoing dividends from the MTRC between 1997 and 2001 at an estimated value of HK$2.8 billion (US$359 million); granting 61 hectares of land to the MTRC for property development; injecting HK$3 billion (US$385 million) of equity into the MTRC in 1993 from the Capital Investment Fund and making available additional callable equity of HK$6.3 billion (US$808 million) in case of adverse circumstances; and reimbursing the MTRC if the government is responsible for a delay in the commissioning of the airport railway. The reimbursement is calculated as 80 per cent of the revenue lost to the MTRC if there is a delay in completing all airport core projects required for the operation of the railway. The aim of the package is to maintain the MTRC's top credit rating so it can borrow successfully for the airport railway project, estimated to cost HK$22 billion (US$2.8 billion).
Airport insurance consultant
Hong Kong-based Gilman Swire Willis Ltd has been appointed the consultant to co- ordinate insurance arrangements for the new airport. The company, a joint venture between London-based Inchcape Group, the Swire Group and Willis Corroon, was awarded the contract by the Provisional Airport Authority.
Cathay Pacific's giant Boeing order
Cathay Pacific Airways, the Hong Kong flag carrier, is placing orders and options for 22 Boeing 777 aircraft worth a record HK$26.8 billion (US$3.4 billion) for delivery between 1996 and a firm order will be made for 11 of the Rolls Royce- powered 777s to be delivered from 1997 to 2000.
Shipping Register incentive
The government has introduced a new incentive to encourage larger ships to join the autonomous Hong Kong Shipping Register. With immediate effect, the first registration fee has been capped at HK$100,000 (US$12,800) and the annual tonnage
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