The territory's construction industry will not suffer a setback after the first phase of the new airport opens next year, an industry executive says.
Speaking after a special meeting yesterday, Paul Y-ITC deputy chairman Tom Lau said the company had construction contracts of $18 billion, of which $13 billion had not yet been completed. He said nearly 40 per cent of the contracts were related to new airport core programmes.
But Mr Lau saw no downturn in the construction industry after the completion of the airport.
'There are still a lot of infrastructure works even after phase one of the new airport is completed,' he said, citing reclamation, Government housing, the Western Corridor Railway and strategic sewage disposal scheme as examples.
Paul Y-ITC announced last week it would issue up to US$85 million in convertible bonds due in 2001. The initial issue will be US$70 million and lead managers have the option to raise the issue by a further US$15 million.
Mr Lau said the company's gearing ratio would reach 150 per cent after the issue.