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Press Release - April 17 1998

Canadian Engineers Encouraged to take part in Hong Kong's Infrastructural Projects

A group of high-powered Canadian professionals including engineers and architects were told today (April 17) to pitch in their efforts and try their hands at securing some of the many major infrastructural development contracts that will be open for tender in the Hong Kong Special Administrative Region (SAR) in the next 4-1/2 years.

This message was given by the Director of the Hong Kong Economic and Trade Office of the Hong Kong SAR Government, Mr Donald Tong, when he addressed a group of professionals pulled together by the Secretary of State for the Asia and Pacific Region, Mr Raymond Chan in Vancouver.

Mr Tong said that there are ample opportunities for Canadian companies wishing to take part in the SAR's massive infrastructural programme which is entering a new phase following the completion of the Airport Core Programme Projects -- one of the world's largest infrastructure development programmes.

The Hong Kong SAR Government recently announced that it will invest in the next 4-1/2 years C$43.5 billion in infrastructural developments to stimulate economic growth, raise the competitiveness of Hong Kong, increase land supply and create more jobs.

He gave an assurance that Hong Kong, which he described as "a hub of infrastructural developments of unparalleled global significance", will not backout from its commitment despite the recent financial turmoil which battered many southeast Asian economies.

"These new projects will be of a much larger scale and will exceed the new airport projects which cost a total of C$29 billion," he said, adding that our new international airport at Chek Lap Kok will be opened to traffic on July 6.

Mr Tong then outlined the various planned major road projects which are expected to cost a total of C$4.6 billion. They include the widening of the Tolo Highway in the New Territories and the Eastern Island Corridor on Hong Kong Island etc.

On railway development, Mr Tong said more than C$20 billion has been set aside for projects which include the West Rail, the Tseung Kwan O extension of the Mass Transit Railway, the Ma On Shan Link, and another railway linking Hung Hom to Tsim Sha Tsui in Kowloon, with the possibility that this will be extended under the harbour to Hong Kong island.

The biggest of these projects is the 54-kilometre West Rail which will run from Kowloon west to the border where a new crossing will be established to connect with the mainland China's rail system.

In addition, the government has commissioned consultants to carry out feasibility studies on the construction of two more highways, and create a blueprint for transport infrastructure for the next decade, including the Third Comprehensive Transport Study to assess the overall transport needs.

Turning to Hong Kong's prized natural asset -- the harbour, Mr Tong told the audience that to cope with increasing demand for container facilities, a new container terminal is being built at Tsing Yi for completion by mid-2001. In the longer term, a completely new container port on Lantau Island with twice the capacity of the present port at Kwai Chung is being planned. Hong Kong currently operates the busiest container port in the world and handled 14.6 million twenty-foot-equivalent units last year.

"Building this new port, on a series of artificial islands stretching southeast from north Lantau, will be one of the world's biggest civil engineering projects," he pointed out, emphasizing that the new facility is also vital for southern China as more than 64 per cent of the cargoes passing through Hong Kong is entrepot trade with mainland China.

On the provision of adequate housing, Mr. Tong said Hong Kong has one of the most ambitious housing programmes in the world because the Government and the private sector plan to build 85,000 housing units a year over the next decade.

Mr. Tong stressed that Hong Kong practises level playing field in assessing and awarding of contracts. He cited the new airport projects as an example, saying that 77 per cent by value of the C$17 billion construction contracts were awarded to overseas firms. He said that such practice ensures that HKSARG would get the best value for money for investment in these projects.

He added that some of the statutory bodies responsible for the C$43.5 billion projects would also raise commercial loans to partially fund these massive undertakings.

"We firmly believe that the year 2000 will usher in the Pacific Century, and we are determined to take a leading part in building the prosperity of the Pacific Rim by maintaining the pace of our infrastructural developments," Mr. Tong concluded.

For further information, please contact Mr. Frank Chuan, Chief Information Officer or Mr. Stephen Siu, Senior Information Officer of the Hong Kong Economic and Trade Office at (416)924-5544.


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