TNAG-2710-FCO40-3916-House-of-Commons-Select-Committee-on-Foreign-Affairs-and-Par-1993 — Page 46

franchises.

The MOU was acclaimed, both in Hong Kong and internationally, as a good and workable arrangement and gave a major boost to confidence. Since then, the Hong Kong

Government have briefed the Airport Committee extensively on

the progress of the project, and have put forward two

alternative financing packages for the Airport Authority and

the Mass Transit Railway Corporation (which will build the

Airport Railway). Despite intensive discussions, agreement

has not yet been reached with China on an overall financing

package. In the absence of an overall agreement, the Hong

Kong Government are adopting a step by step approach on building the airport, to fulfil the obligations under the MOU

and to avoid slippages and expensive cost increases wherever possible. The Hong Kong Government still hope to reach agreement with China on financing to enable the airport to

open on schedule.

25. 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 with one runway in operation. When fully developed, it will have two runways, operate 24 hours a day and will be able to handle 80 million passengers a

year. Supporting infrastructure will include major bridges

and a tunnel linking North Lantau to Hong Kong Island via

Tsing Yi and West Kowloon, and road and rail transport links.

26.

British companies and British/Hong Kong companies have

been very successful in securing both consultancy and construction contracts. For example, a group led by British Airports Authority has won the contract to design the new airport terminals and British companies are represented in the

international consortia which have won the three largest

airport contracts; the Lantau Fixed Link, Phase One of the

ipu.conf.PR

SLM

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