TNAG-2619-FCO40-3810-Official-visits-from-the-UK-to-Hong-Kong-1992 — Page 9

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differences between the two sides.

Discussions will

continue after a pause for reflection.

20.

The total cost of the new airport and related infrastructure projects is estimated at HK$ 112.2 billion at

March 1991 prices. The private sector is expected to take

up some 60% of the funding. The new airport itself is

scheduled to come into operation in 1997, initially with one runway. When fully developed, it will have two runways, will be able to operate 24 hours a day and to handle 80 million passengers a year. Supporting infrastructure will include a fixed crossing (ie suspension bridges) linking

North Lantau to Hong Kong Island via Tsing Yi and

West Kowloon, and road and rail transport links.

21.

British companies are taking a close interest in the project. Many consultancy contracts have been awarded to British companies including Kleinwort Benson, Wardley's and

Mott MacDonald and Maunsell. A reclamation project has been

awarded to Gammon (in which Jardines and Trafalgar House

have half shares) and a group led by British Airports

Authority has won the contract to design the new airport

terminals. The contract for the main bridge (Lantau Fixed

Link) was recently awarded to the Anglo-Japanese Consortium,

which inclues Trafalgar House, Costain and Mitsui, and the

contract for Phase 1 of the North Lantau Express way was won

by a consortium which includes AMEC (UK). These are the two

largest PADS related contracts to have been awarded so far.

22.

A letter of intent in respect of the largest of all the

airport contracts, that for the airport site preparation,

has been issued to a Japanese-led consortium, in which

Costain Civil Engineering have a large stake. The contract is expected to be awarded when differences with China on financial issues have been resolved, and funds approved by the Legislative Council.

JH4ABS/7