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It was stated that no guarantee would be available
either from the Hong Kong Government or from any Bank.
Tenderers could
As security the Company offered a lien on its revenues
or a mortgage of its assets or both.
assume an average cash flow of the order of £2 million
per annum for the first five years of operation.
4. Costains tendered on the basis of a loan of £8.1
million from Lloyds Bank (representing about 64% of the
contract price af £13 million) repayable over 7 years
from completion for the U.K. element and 5 years from
completion for the local costs element. E.C.G.D. oover
offered
in respect of this loan was made subject to the
following conditions:-
5.
(a) an irrevocable joint and several guarantee
from the main shareholders in the Cross-
Harbour Tunnel Company (Wheelock Marden
& Co.,Ltd. and Hutchison International Ltd.);
(b) an irrevocable lien from the Cross-Harbour
Tunnel Company on the total revenue of the
tunnel, in favour of the lending Bank;
(c) an irrevocable undertaking by these two
shareholders, together with the Hong Kong
Government, the Hong Kong & Shanghai Bank
and any other major shareholder, to subscribe
additional capital to the Tunnel Company
in approved proportions to raise its present
capital of £625,000 to £7 million.
In acknowledging Costains' offer the Tunnel
They
Company be referred to these two conditions.
suggestäthat if the loan could be increased to 75% of
the contract value "this would give your tender an
added financial advantage which could be decisive".
/They
NOTHING TO BE WRITTEN IN THIS MARGIN
;
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