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Townsend warns Sino-British row threatens PAA deadline

NEW Provisional Airport Authority (PAA) chief executive Dr Hank Townsend warns that the Sino-British political row is jeopardising the scheduled completion of the first phase of Hongkong's $68 billion new airport by 1997.

He said that every passing month of political stalemate increased the risk of failing to meet the deadline.

Dr Townsend's comments came after his first public address since being promoted to the influential chief executive's job last month, following the sudden departure of Mr Richard Allen.

He stressed there had been no delays in the development programme yet, but emphasised the difficulty of planning when the British and Chinese governments were not even discussing the financing of the airport at Chek Lap Kok.

''I think all of us are desirous of an early resolution to the impasse and an opening up of discussion with the Joint Liaison Group airport committee,'' he said yesterday at the Hongkong International Aerospace Forum.

Dr Townsend said the PAA had been preparing for all eventualities and would be ready to accelerate its development programme to meet the original airport opening deadline as soon as a resolution to the financing row was found.

''I have no control over the deadline so I have to be ready for whatever may come out of the discussions and understandings between the governments,'' he said.

The $9 billion site preparation contract was awarded last year with Hongkong Government backing and work is now in progress, much to China's anger.

''There is immense activity on the island today,'' Dr Townsend said. Dredgers have been working around the clock to claim 938 hectares of land from the sea on which to build.

Land excavation has begun on Chek Lap Kok which, with the smaller island of Lam Chau, will provide a further 310 hectares. Work has also started on levelling the Brother Islands.

By May next year there should be sufficient land to enable construction of the new airport's giant passenger terminal, should the PAA be in a politically-acceptable position to award construction contracts.

By 1995 contractors should be ready to begin building the first of the two parallel runways and the privately-owned airside support facilities which will be needed to be ready in time for the scheduled airport opening before the transfer of sovereignty.

The airport is due to open with a single runway and passenger terminal, airside facilities and landside assets designed to meet opening day demand.

It was hoped the second runway would be ready by the year 2000.

Dr Townsend said: ''We are confident that the airport will generate sufficient revenue to enable us to cover operating costs, service our debt and make a small gain in the first year of operation.

The PAA's primary revenue sources will be aeronautical charges set by the Government, passenger terminal tax and airside concessions, passenger terminal concessions and real estate developments.

''By the year 2000, these five revenue sources are expected to generate more than $10 billion a year,'' he said.

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