Hong Kong Airport Core Programme Engineering Essay

By September 11, 2017 Engineering

Hong Kong International Airport is the chief airdrome in Hong Kong and is known as Chek Lap Kok Airport. The airdrome opened for commercial operations in 1998, replacing its predecessor, the Kai Tak, and has now become an of import regional logistics and rider hub every bit good as the gateway for finishs in Mainland China and the remainder of Asia. In a span of a decennary, the airdrome has won eight Skytrax World Airport Awards for client satisfaction and has besides won the Skytrax World Airport of the Year 2011.

The airdrome operates one of the universe ‘s largest rider terminal edifices and is the chief hub for Cathay Pacific, Dragonair, Hong Kong Express Airways, Hong Kong Airlines and Air Hong Kong ( lading ) . Few air hoses use Hong Kong as a way station point for flights.

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The Chek Lap Kok Airport was designed as a replacing for its predecessor. The Kai Tak, being originally built in 1925 was located in the dumbly populated Kowloon City District with a individual track widening and therefore, had merely limited room for enlargement to get by with steadily increasing air traffic. By the 1990s, Kai Tak had become one of the universe ‘s busiest airdromes. The air and rider traffic exceeded the airdrome ‘s capacity to manage them. As a consequence, one out of every three flights met holds, mostly due to miss of infinite for aircraft, Gatess, and a 2nd track. ( Beginning: .http: //www.scribd.com/doc/85576896/The-Hong-Kong-Airport-Core-Program ) .Also, a to the full loaded 747s must execute a 47-deg. turn on most attacks to Kai Tak, stoping at 674 ft. above land degree, doing the track one of the trickiest 1s to set down on. With 350,000 people populating under the flight waies and exposed to severe noise pollution at Kai Tak as opposed to 1,000 people populating under the attacks to Chep Lap Kok, the latter seemed to be the site of pick for the new airdrome

( Beginning: hypertext transfer protocol: //www.gsd.harvard.edu/research/research_centers/zofnass/pdf/Hong % 20Kong % 20International % 20Airport.pdf )

By 1973, the authorities had singled out Chep Lap Kok as the coveted replacing site. However, the fiscal and oil crises in the mid 1970 ‘s put an terminal to any hopes of execution. Finally a Memorandum of Understanding was signed in late 1991 by Jon Major and so Chinese Premier Li Peng, leting the formation of two quasi-governmental organic structures to supervise and implement the vision for the new airdrome:

The Sino British Airport Committee board- dialogue of the fiscal and policy model that would be carried out by the Provisional Airport Authority,

Probationary Airport Authority -responsible for planing and developing the undertaking.

( Beginning: hypertext transfer protocol: //www.gsd.harvard.edu/research/research_centers/zofnass/pdf/Hong % 20Kong % 20International % 20Airport.pdf )

The Airport Core Undertaking:

The replacing undertaking was called the “ Airport Core Project ” and is comprised of the undermentioned sub-projects:

Chek Lap Kok airdrome ( first track and installations )

North Lantau Expressway

West Kowloon Reclamation

West Kowloon Expressway

Western Harbour Crossing

Path 3

Central and Wanchai Reclamation, associating to Airport Railway

Lantau Fixed Crossing

Tung Chung Development ( Phase I )

Figure 1: The Airport Core Programme ( Source: hypertext transfer protocol: //www.hyd.gov.hk/eng/road_and_railway/airport/index.htm )


The cost for the whole undertaking was estimated at over HK $ 200 billion, and the Chinese Government was concerned about its impact on the fiscal modesty of the hereafter Hong Kong SAR Government. As a effect, several alterations were made to the program, and the undertaking ended up bing HK $ 160.2 billion.

As per the 1991 estimations, building of the Chek Lap Kok would be HK $ 43,600 million. HK $ 3,100 million was devoted for this from the capital works fund, $ 13,800 million in authorities equity. The adoption of deserving HK $ 16,500 million was besides incurred by the Provisional Airport Authority ( PAA ) and HK $ 10,200 million were invested by private parties.

West Kowloon renewal would be $ 9,000 million, which would be funded by the capital works reserve fund. The freeway would be HK $ 1,700 million and would be paid for through the capital works fund. CWRF financed the 31 kilometers North Lantau expressway, estimated at $ 4,300 million, the first stage of the Tung Chung new town development, bing HK $ 2,600 million, public-service corporations priced at $ 1,500 million and the first topographic point of Route 3 from the southern tip of Kowloon to an airdrome interchange estimated at HK $ 5,600 million. Central and Wanchai renewal was expected to be HK $ 1,800 million.

The private sector, through a finance, design, construct, ain, operate and transportation grant, would finance the 1.5 kilometer Western Harbour Crossing, which was estimated to be HK $ 3,900 million. The Mass Transit Railway Corporation will besides finance, through authorities equity bond issues and adoptions, the building to the airdrome railroad. The 1991 estimation is $ 12,500 million.

The authorities was involved in the building of all major on-airport installations, except the rider terminus, which will be funded and managed by the private sector ( See Figure 2 ) . ( Beginning: hypertext transfer protocol: //www.cnplus.co.uk/news/02aug91-hong-kong-british-firms-vie-for-airport-core-programmes-first-scheme/1706538.article )

Figure 2: The Airport Core Programme Financing Structure. The figures are sole of the adoption costs and the cost of rail modesty ( Beginning: hypertext transfer protocol: //www.legco.gov.hk/yr91-92/english/lc_sitg/hansard/h911204.pdf )


As seen from Figure 2, the authorities was the primary beginning of support. Although funding from private parties was encouraged, it was still limited.

Govt. and CRWF

Under the understanding signed in 1995, the Hong Kong Government can add equity into substructure undertakings supported by the airdrome authorization, and the Mass Transit Railway. Over HK $ 60.3billion was committed by the Hong Kong authorities for the same. This understanding saw the Chinese allow the airdrome authorization to publish bonds as a authorities entity, and besides to borrow financess in the capital markets.

In 1995, three important trades were struck for the building of the chief rider terminus ( BCJ Joint venture ) , terminal edifice services ( AEH joint Venture ) , and the first track ( Downer- McAlpine joint venture ) . The contracts totaled HK $ 10.1, $ 1.8, and $ 2.61 billion severally. These financess were all sourced from the $ 34.5 billion in authorities injections that would change over to equity at the terminal of the twelvemonth

( Beginning: hypertext transfer protocol: //www.gsd.harvard.edu/research/research_centers/zofnass/pdf/Hong % 20Kong % 20International % 20Airport.pdf )


The understanding signed in 1995 allowed borrowing boulder clay a capacity of HK $ 5 billion from the Bank of China, provided the debt is re-paid after 30th June `1997.This made Bank of China one of the major creditors.

November, 1995- HK $ 8.2 billion was borrowed through a pool of 11 different Bankss. The loans were used to finish the first stage of the ACP. This fiscal agreement was the last to be executed before the official passage of Hong Kong into Chinese custodies in June of 1997.

1996- The Airport Committee of the Sino-British Joint Liaison Group signed an understanding to let early development of a 2nd track and associated installations at the new airdrome. The Airport Authority ( AA ) delegated four establishments to set up a three twelvemonth go arounding installation for an sum of HK $ 3,000 million. These establishments include:

China Development Finance Company ( Hong Kong ) Limited ( for Bank of China, Hong Kong Branch ) ,

Tokyo-Mitsubishi International ( HK ) Limited ( for The Bank of Tokyo-Mitsubishi, Ltd. ) ,

Chase Manhattan Asia Limited ( for The Chase Manhattan Bank ) , and

HSBC Investment Bank Asia Limited ( for The Hong Kong and Shanghai Banking Corporation Limited ) .The installation was for general corporate intents, including the funding of the 2nd track, the northwest multitude and new capital outgo originating after the gap of the airdrome.

( Beginning: hypertext transfer protocol: //www.gsd.harvard.edu/research/research_centers/zofnass/pdf/Hong % 20Kong % 20International % 20Airport.pdf )

Cathay Pacific

The air hoses invested in the undertaking by renting out about 3.3 hectare ) land country was for its new central office. The air hose had programs to pass over $ 3.5 billion HKD on the undertaking, which would supply a consistent beginning of operating income for the Airport Authority


Environmental RISKS:

Extensive land renewal for the building of the airdrome would present a menace to the marine ecosystem.

Menace of cyclones and typhoons is high.

Menace of temblors is high as the island is located in a tectonically active part.

Political Hazards:

Distrust between British and Chinese authoritiess.

The Chinese suspect a long-standing British design to bolt with the excess capital of Hong Kong. The British, on the other manus, have perceived the Chinese leaders as ill-informed and barbarous in their exercising of power ; and likened their negotiants to street combatants.

( Beginning: hypertext transfer protocol: //www.gsd.harvard.edu/research/research_centers/zofnass/pdf/Hong % 20Kong % 20International % 20Airport.pdf )

Hazards associated with the passage to Chinese sovereignty.

Financing Hazards:

Heavy disbursement could turn out to be taxing to the Hong Kong govt.


A start-up job, if occurred, can be an expensive 1.

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