OPTION 1: TWO-RUNWAY SYSTEM Under Option 1, we have examined to what extent airport infrastructure and facilities at Hong Kong International Airport (HKIA) could be further enhanced to fully support the practical maximum air traffic movements (ATMs, also known as flight movements) capacity of the two-runway system (420,000 ATMs/ year), without compromising service quality. CAPITAL INVESTMENT By continuing the Midfield development and further expanding the following facilities, at an estimated cost of approximately HK$23.4 billion (in 2010 dollars) or HK$42.5 billion (at money-of-the-day [MOD] prices)9, including provisions for design, project management and contingency, phased over 15 years between 2016 and 203010, HKIA’s capacity could be increased to handle a maximum of about 74 million passengers and 6 million tonnes of cargo annually. 9 The final construction cost of the capital projects will be increased from the current estimate based on 2010 dollars to the MOD amounts, in line with the Tender Price Index (TPI) which is estimated to increase at the rate of 5% per annum from 2011 to 2014, 5.5% per annum from 2015 to 2020 and 3% per annum thereafter. The cost breakdown is in 2010 dollars. 10 28