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Hong Kong's third runway proposal
Hong KongHong Kong Economy

Hong Kong transport chief confident in Airport Authority plan to raise HK$69 billion in loans for third runway

He also dismisses need for government to act as guarantor amid doubts about operator’s ability to repay debt

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The third runway at Hong Kong International Airport is projected to cost HK$141.5 billion in total. Photo: Felix Wong
Raymond Yeung

Hong Kong’s transport minister has expressed confidence in the Airport Authority’s plan to raise HK$69 billion in loans by itself for the construction of a controversial third runway.

Frank Chan Fan also dismissed the need for the government to act as a guarantor, as he addressed concerns over the ability of the Hong Kong International Airport operator to repay the debt.
Three days after the Airport Authority released details of the different ways it planned to fund the HK$141.5 billion project – including issuing HK$5 billion of retail bonds – its managers appeared at the Legislative Council to respond to lawmakers’ questions.

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A number of democratic lawmakers feared the government would be forced to bail out the authority – a statutory body wholly owned by the administration – should it run into financial trouble.

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Chan stressed in his opening remarks that officials had always kept an eye on the project’s commercial arrangement and risk management.

The cost estimate is based on the project being completed without a budget overrun
lawmaker Kwok Ka-ki

“From our understanding, the Airport Authority would continuously assess the relevant risks and take relief measures when necessary,” he said.

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“Its financial consultant also reiterated there was no need for the government to provide financial support or guarantee of any kind in the funding proposal.”

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