Update on the Development of the

Three-Runway System atHong Kong International Airport

Airport Authority Hong Kong22 June 2020

Legislative Council Panel on Economic Development

LC Paper No. CB(4)744/19-20(01)

3RS Construction commenced on 1 August 2016

2

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Reclamation Progress

3

Work% Completion

(as at end May 2020)

Deep Cement MixingMarineLand-based

97%19%

Seawall (up to +2.5mPD)*

83%

Reclamation Filling 69%

Note: * Seawall completion excludes armour rock.

.

Vertical Seawall

Reclamation FillingLand-based DCM Work

Sloping Seawall

4

Updated 3RS Reclamation Phasing Plan (as at May 2020)

Target Completion Time of Reclamation

2019

Q2 to Q4 2020

2021 / 2022

Early 2020

Progress Status

Completed

Being handed over for follow-on works in phases

In progress

Completed

Areas needed for operation of

Third Runway in 2022

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Reclamation in Progress on the new North Runway

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3RS Layout Plan

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TRPB Foundation and Sub-structure Works commenced

3RS Layout Plan

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vis-a-vis

Structural Work in Progress on Key Buildings in West Support Area

7

3RS Layout Plan

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T2 Expansion Advance WorksSouth Annex Building

8

Terminal 2 Expansion

Tunnel works under AEL Infrastructure works

May 2020May 2020

May 2020 May 2020

Green Design and Sustainable Construction

Aviation Fuel Pipelines by HDD:

Merit Award under Organisation

Category in CIC Sustainable

Construction Award (2018)

Excellent and Outstanding

awards under Industry

Practitioners Category in CIC

Sustainable Construction Award

(2018)

Third Runway and Associated

Works:

Excellent rating under CEEQUAL’s

Sustainability Performance

Assessment for Interim Client and

Design Award (2020)

T2 Expansion:

Platinum rating under BEAM Plus

Provisional Assessment (2020)

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CIC SUSTAINABLE CONSTRUCTION AWARD 建造業議會可持續建築大獎

HKGBC

BEfri\M Plus 綠這環評

~CEEQUAL delivered by bre

Marine Ecology & Fisheries Enhancement

First large-scale coral

transplantation in HK:

Transplanted >500

whole coral colonies

(May 2018)

Completed 16 months

post-monitoring with

<10% mortality rate

Fish restocking pilot test:

Released >8000 black

seabream, yellowfin

seabream and green grouper

fingerlings (May & Sept 2019)

Tagged fishes recorded

around North Lantau by

acoustic telemetry a few

months after release

Eco-enhancement seawall

design:

>500 eco-enhancement

seawall blocks to promote

colonisation by epifauna

Installed the first batch on

eastern and northern

vertical seawalls (2019)

Artificial Reef (AR)

deployment pilot

test:

Design, build, and

deploy contract to

award in Q2/Q3 2020

AR to deploy at

western HKIAAA in

late 2020 / early 2021

10

已y

且...

vis-a-vis

3RS Environmental Funds

Pearl Farming

Pilot Project

Marine Ecology Enhancement Fund and Fisheries Enhancement Fund

Total Capital: HK$400M by AAHK in late 2016

Projects Supported: 23 projects and over HK$30M granted since 2017

Conservation Ecology of

Chinese White Dolphins

across Pearl River Estuary

Impact of Microplastics on

Chinese Horseshoe Crab

in HK Western Waters

Sustainable Aquaculture

Development Pilot Project -

Australian Red-claw

Crayfish

11

Reclamation Progress (6 May 2020)

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Financial Arrangement Plan

13

Financings in 2020/21

• 3-year HKD5 billion fixed-coupon retail bond

– Deferred from 2019/20 due to COVID-19 outbreak

• Arranging 5-year HKD20 billion term loan and revolving credit facilities. Mayupsize the facilities subject to market responses

• Final details and the timing of the execution of the financings depend onAAHK’s funding needs, 3RS project progress, and the market environment

14

vis-a-vis

Detailed funding plan and indicative implementation timeline

FY 2018/19 FY 2021/22 FY 2022/23FY 2020/21FY 2019/20 FY 2023/24

Preparatory Work

Institutional Bonds (including green

format)

USD

HKD

Retail Bonds

Commercial Bank Loans

3 yearHKD 5bn

Up to 10 YearHKD 7-10bn

Up to 5 Year HKD 20-30bn

7 YearHKD 10-15 bn

5 YearHKD 9-14 bn

FY 2017/18

10 YearHKD 4bn

FY 2024/25

Total

HKD 23-33bn

HKD 7-10bn

HKD 5bn

HKD 20-30bn

Total HKD 9-14bn HKD 16-28bn HKD 30-36bn

Sources: AAHK, 3RS Consultancy Study: Detailed Funding Plan for Three-runway System (3RS) at HKIA – Financial Advisor Report, HSBC (2017),with updates of retail bond timing.

* HKD 55 – 78 billion represents the summation of the lowest and highest range of each debt instrument type.

Revolving Bank Facility

Up to 5 Year Up to HKD 10bn

HKD 55-78bn *

Medium Term TransactionsNear Term

TransactionsPreparatory

Period

Preparatory Work

Estimated total HKD 69bn

(Completed in Feb 2019)

3 yearHKD 5bn

(Upcoming)

Up to 5 YearBank Loan

(Upcoming)

(Upcoming)

(Deferred due to COVID-19)

15

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Medium Term Transactions

• Prepare Green Framework for tapping Green Financing when time is right

• AAHK is maintaining the 3RS financial arrangement plan for the time being, butwill continue to monitor the operating environment and market conditions in2020/21 and stay vigilant

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Thank You

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