Hong Kong $18b airport upgrade hit by over year delay

Hong Kong’s much vaunted HK$141.5b ($18.1b) airport expansion has been delayed until at least the end of 2025, according to people with knowledge of the matter, in a blow to the Asian financial hub’s post-Covid economic revival. Originally due to the completed by the end of 2024, part of the second terminal development will now not be ready for another year at least, the people said, asking not to be identified because the information isn’t public. The second passenger concourse won’t be ready until 2026, one of the people added. The delay hasn’t been announced by Airport Authority Hong Kong, which operates the city’s international airport, however it has been communicated privately to some key stakeholders. Considering the upgrades involve one of the airport’s existing middle runways, all three take-off and landing strips aren’t now planned to be fully operational until the summer of 2025, the people said. The middle runway that’s under refurbishment is currently on track for completion, certification and testing by Q4 of this year, one of the people said. Representatives for Airport Authority Hong Kong said the expansion was progressing “steadily on all fronts with the target to complete” the three runway project by 2024 in an email response. They reiterated an earlier plan to phase-in the passenger facilities to be in line with the post-pandemic recovery. Hong Kong’s Transport and Logistics Bureau said the Airport Authority Hong Kong is “continuing the remaining works at full steam according to schedule.” The delay is another blow to Hong Kong, which is still recovering from the long shadow of its strict Covid restrictions. Weak consumer spending dogged by a lower-than-expected volume of tourists from mainland China and high borrowing costs that have dragged on investment have also hindered growth.<br/>