CONFIDENTIAL
Company stated that its shareholders would provide
£7.5 million of which up to £3.75 million would be
needed for approach roads and miscellaneous charges.
Contractors were to be required to arrange finance for
the balance, repayable over a period of eight years from
completion. It was stated that no guarantee would be
available either from the Hong Kong Government or from
any Bank. As security the Company offered a lion on
its revenues or a mortgage of its assets or both.
Tenderers could 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 of £13 million) repayable over seven years from
completion for the United Kingdom element and five years
from completion for the local costs element. E.C.G.D.
cover in respect of this loan was offered subject to
the following conditions:
(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 lion from the Cross-Harbour
Tunnel Company on the total revenue of the
tunnel, in favour of the lending Bank;
CONFIDENTIAL
/(c)