Opinion | From financing issues to manpower shortages, Hong Kong's third runway plan is doomed to fail
Albert Cheng says recruiting air traffic controllers from overseas, to boost the capacity of the two existing runways, would be far cheaper
Airport Authority chiefs have been racking their brains on how to bypass the legislature to fund the proposed third runway, ever since the environmental impact assessment for the project was approved last year.
Last month, the authority submitted a proposal to the Executive Council on how to finance the massive infrastructure project. It has estimated the cost at HK$136 billion, a far lower figure than earlier market predictions of around HK$200 billion.
Even at this price, the odds of a smooth sailing through the Legislative Council remain slim. Public objections to the plan are mounting, with some people painting it as a white elephant, while green activists are seeking a judicial review to nullify the environmental permit already issued.
The authority has reportedly come up with a three-pronged approach to get round public opinion. It wants to waive dividend payment to the government for eight years, so that a special HK$40 billion fund could be set aside for the purpose. It paid a record HK$5.3 billion dividend to the government, which is its sole shareholder, in the last financial year.
It is also poised to impose a "runway construction surcharge" of between HK$150 and HK$200 on each passenger, generating another HK$3 billion a year for the next 10 years. This would be on top of the HK$120 departure tax now levied on passengers aged 12 or above who leave Hong Kong by air.
The remaining amount could be met by issuing bonds.