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The Financial Secretary, Mr Henry Tang, today (August 6) announced the Government's intention to proceed with the eventual part - privatisation of the Airport Authority Hong Kong.

"The Government has decided to commence work immediately in preparation for the privatisation project, and will shortly appoint a financial adviser to assist in the process.

"The Government will work out, in close consultation with key stakeholders involved, the main issues including the legal and regulatory framework required for privatising the Airport Authority," Mr Tang said.

The plan is to introduce the required legislation into the Legislative Council in the first half of 2004 and, subject to its enactment and the availability of suitable market conditions thereafter, to launch an initial public offering of the shares of the Airport Authority.

"The Government considers that privatisation of the Airport Authority will be conducive to maintaining and further developing Hong Kong International Airport as a centre for international and regional aviation. When successfully listed on the Hong Kong stock exchange, shares of the privatised Airport Authority will also help enhance the attractiveness of our stock market to investors," Mr Tang explained.

He went on, "Moreover, a privatised Airport Authority will represent another key step forward in the Government's privatisation programme following listing of the MTR Corporation Limited on the Hong Kong stock exchange in October 2000."

As part of the Asset Disposal Programme announced in the Government's Budget on March 5 this year, proceeds from the initial public offering of the Airport Authority will also help bridge the shortfall in capital revenues forecast for the medium term.

End/Wednesday, August 6, 2003

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