Tuesday, December 08, 2015
The Airport Authority yesterday signed a HK$5 billion revolving credit facility with 21 local and international banks to be used in construction of the third runway.
The banks include HSBC, Hang Seng, Standard Chartered, Bank of China, and the Australia and New Zealand Banking Group.
Most of the money will go toward design of the runway, geographical surveys and preparatory work, according to authority chairman Jack So Chak-kwong, who hopes the related construction work will be approved and started before the middle of next year.
"The success of this revolving credit facility will also lay a solid foundation for financing the three-runway system. Hong Kong International Airport beats at the heart of the economy, and its expansion into a (three- runway system) will bring tremendous social and economic benefits," So said at the signing ceremony with bank representatives.
Asked if costs will overrun the allocated budget as with several other infrastructure projects, So said work is yet to begin on the runway and therefore the question is premature.
"The work has not started so how can there be a cost overrun? ... We should not be affected because of other cost overruns. We need to continue to expand [the airport] and carry out other infrastructure projects because Hong Kong needs to move forward."
The third runway is also facing judicial reviews from green groups and social activists, but So said the authority cannot wait forever.
"Someone can always file a judicial review, but we cannot just wait [for the end of it] ... unless we are asked by the court to stop the work, we should start the construction process, because we have the legal grounds to do so."
Meanwhile, the authority said its unaudited interim financial results for the six months ended September 30 showed a 14.7 percent increase in turnover over the previous year at HK$9.196 billion, while net profit was HK$4.707 billion.
The third runway will cost HK$141.5 billion. In its latest financial arrangement, the authority said HK$69 billion will come from borrowing, HK$47 billion from the operational surplus and HK$26 billion from the levy on passengers. KENNETH LAU
http://www.thestandard.com.hk/news_detail.asp?we_cat=4&art_id=164000&sid=45713359&con_type=1&d_str=20151208&fc=2
