Airport Authority Releases Detailed Funding Study for the Three-runway System

Press Release - 26/09/2017

(HONG KONG, 26 September 2017) – Airport Authority Hong Kong (AA) today released the report on the detailed funding study for the Three-runway System (3RS) of Hong Kong International Airport (HKIA) submitted by its financial advisor.

The report was released after in-principle acceptance by the Board of the AA.

The Hongkong and Shanghai Banking Corporation Limited (HSBC) was appointed by the AA as financial advisor last year for the study of the detailed funding plan for the 3RS project. The objective of the study is to analyse different debt structures, identify suitable forms of financial instruments, and make recommendations on the financial instruments in relation to their timing, size and tenor that will enable the AA to raise funding for the 3RS project in the most optimal manner.

The approach and key funding objectives recommended by HSBC entail raising debt on cost-effective terms that are consistent with the AA’s investment plans and funding needs, whilst allowing flexibility in the timing of market approach. HSBC has also examined all potential forms of financing, including the possibility of allowing public participation.

HSBC concludes that AA has strong access to debt markets and is confident that AA will be able to raise the required incremental debt of up to HK$69 billion on reasonable terms, and that the recommended detailed funding plan is robust and practicable.

The overall financial arrangements for the 3RS are based on the “joint contribution and user-pay” principle. Funding will be provided through three sources: retaining AA’s operating surplus, levying an airport construction fee on passengers departing from HKIA and borrowings from the market.

The full report of HSBC’s study is available on the 3RS website at

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