Date
24 January 2017
Hong Kong's planned new airport runway will yield immense economic benefits over the long term, says Airport Authority's Fred Lam. Photo: HKEJ
Hong Kong's planned new airport runway will yield immense economic benefits over the long term, says Airport Authority's Fred Lam. Photo: HKEJ

Airport Authority sees huge economic benefits from new runway

Hong Kong’s Airport Authority (AA) expects the planned third runway at the international airport to yield economic benefits of HK$455 billion (US$58.6 billion) over 50 years and help create 80,000 new jobs, according to documents submitted to the Legislative Council.

The airport operator plans to borrow HK$69 billion to fund part of the project that will cost a total of HK$141.5 billion, the Hong Kong Economic Journal reported Wednesday.

AA chief executive Fred Lam Tin-fuk was quoted as saying that he doesn’t foresee any big problem in securing funds given the abundant liquidity worldwide.

Stress tests have shown that the authority would have enough room to acquire extra funds should the construction get delayed and the project goes over budget, Lam added.

There will be leeway for an extra HK$7 billion each year.

William Lo Chi-chung, AA’s executive director for finance, told lawmakers that funds will be raised through banks and the bond market.

Lawmakers, meanwhile, have suggested that airport operator could consider issuing retail bonds and also seek money from entities managing local pension funds.

[Chinese version中文版]

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