An average of $29 billion will be earmarked annually for infrastructure projects over the coming years. In his Budget speech today, Financial Secretary Henry Tang said developing Hong Kong's infrastructure will promote economic development, increase employment opportunities and improve the living environment.

"During the Budget consultation period, I heard many suggestions for the Government to expedite the implementation of various infrastructure projects to create more employment opportunities for the local construction industry. We fully recognise the aspirations of the community and have been making great endeavours to this end," he said.

The Government is expediting the implementation of major infrastructure projects. In the next financial year, projects starting construction include the Tamar development project, upgrading works for the 2009 East Asian Games sports facilities, Stage 2 of the Replacement & Rehabilitation Programme for Water Mains, and drainage works in various districts.

Mr Tang said these projects will create 23,000 construction jobs.

Planning ahead

Plans are underway for major projects, including the Central-Wan Chai Bypass and Wan Chai Development Phase II, Central Kowloon Route and Kai Tak Development, which will involve expenditure of $25.2 billion, $12.5 billion and $9.8 billion, and provide 14,000 jobs.

"However, these projects have yet to commence as they require more time for preparatory work, including public consultation. We hope that the various sectors of the community can reach a consensus on these projects as soon as possible, so that an early start can be made on them." Mr Tang said.

The Concept Plan for Lantau has been revised. For balanced development and conservation, the Government accord priority to projects that can stimulate the local economy and improve people's livelihood.

"For other projects with implications for the long-term economic development of Hong Kong, we will deliberate on the best implementation model and timetable according to actual circumstances," he said. "The feasibility study for the Logistics Park, for example, will shortly be completed. Thereafter, the Government will consult the public on details of the implementation plan."

Logistics upgrade

To enhance Hong Kong's competitiveness in logistics, an electronic advance cargo information system will be constructed. It will provide a seamless system for cargo movement and customs clearance.

The On-Board Trucker Information System will be tested, with the aim of raising the operational efficiency of the trucking industry.

To better equip our logistics practitioners, the Government and the Productivity Council will organise training programmes to help them master job-related information and automation technologies. The Economic Development & Labour Bureau will liaise with the industry on enhancing its competitiveness.

About $3.1 billion has been earmarked to replace Hong Kong International Airport's air-traffic control system and to build a new headquarters for the Civil Aviation Department. The department will also enhance flight procedures and air traffic-control technology and work in collaboration with the aviation industry and the Airport Authority to increase runway capacity.

The department will discuss with aviation authorities on the Mainland and in Macau, ways to optimise airspace design in the region and open additional air routes. The authority is inviting tenders for an additional cargo terminal and assessing the need for a third runway.