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A continued investment in upgrading and expanding Hong Kong's physical infrastructure is essential for improving living environment, creating more land for future use and stimulating the economy and providing jobs, the Chief Executive, Mr Tung Chee Hwa, said today (Wednesday).

The Government's public works programme was well-stocked with major projects aimed at improving transport links, Mr Tung said in his policy address.

He said the Government would continue to build on the major road and rail networks to ensure that the transport system matched development.

Good progress had been made in this area since he announced some of the plans in last year's Policy Address. The planning and implementation of the following priority railway projects were proceeding at full speed:

*construction of the West Rail Phase I had been authorised

and work would start before the end of this year,

*authorisation for the MTR Tseung Kwan O Extension would

be sought in the coming weeks so that construction work

on the project could also begin before the end of the

year;and

*the Government aimed to complete the necessary

statutory procedures and finalise planning for the

implementation of the Ma On Shan Railway in 1999 so that construction could start in 2000.

Mr Tung said:" Altogether these railways, which will open between 2002 and 2004, will cost $110 billion, and will create 27 000 jobs during their design and construction phase."

Besides these projects, the Government was also planning to build a spur line which would connect the KCR at Sheung Shui with Lok Ma Chau to meet cross-boundary traffic demand. It would be due for completion in 2004.

On major roads, Mr Tung said good progress was being made in the design of the following projects on which building was due to start between 2000 and 2004:

*Route 9 connecting Tsing Yi and Cheung Sha Wan;

*Route 16 connecting Sha Tin and West Kowloon;

*the section of Route 5 connecting Tuen Mun Road and the Tsuen Kam Interchange; and

*the section of Route 10 connecting North Lantau and Yuen Long.

The design and construction of these roads would create about 10 500 jobs.

In addition, a start had been made on the preliminary planning for the Central Kowloon Route and Route 7 between Kennedy Town and Aberdeen.

"All these new roads would help to clear existing bottle-necks, as well as serve transport demand and tie in with land use planning," Mr Tung said.

Mr Tung said apart from these commitments, in 1999 the Government would complete the Second Railway Development Study and the Third Comprehensive Transport Study.

These would provide a blueprint for road and railway expansion to meet transport and development needs to the year 2016.

Mr Tung also said it was understandable that in the current economic climate some might question the Government's capacity for funding major new projects.

He said: "We have examined again the level of our resources, and I can give this assurance: we have sufficient resources within our expenditure guidelines to allow us to realise the projects for which we have ear-marked expenditure over the next five years. Investing in high quality infrastructure is an investment in our future."

Turning to the new airport, Mr Tung said Hong Kong now had a magnificent new facility capable of allowing the Government to expand air links and services for generations to come.

Upon completion of the second runway the airport's capacity and operating flexibility will increase further.

Mr Tung said the Airport Authority would keep under regular review the need for additional facilities and the Civil Aviation Department would begin work on converting ground-based air traffic control systems to next-generation satellite systems.

"This will ensure that Hong Kong's civil aviation sector maintains the high standards expected of a major international aviation centre," he said.

Mr Tung noted that the opening of the airport in July was not trouble-free. "A Commission of Inquiry into the reasons for the early problems in the airport's operation is due to report to me in January next year, and I will act as appropriate upon the recommendations of that Commission," he said.

End/Wednesday, October 7, 1998

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