ANNEX B
THE CROSS HARBOUR TUNNEL CO. LTD.
Proposals in response to Financial Secretary's letter dated
18th December, 1967
GOVERNMEN:
1.
3.
Government to invest to an amount of $27.5 million regardless of whether or not this is more than 25% of the Equity Capital.
Government to be asked to make a loan of $12 million in 1969 (at the time when the first repayment on the roads are due) bearing interest at 8% p.a. and repayable 12 months after the final payment to E.C.0.D. This will be instead of it waiving the payments as sugested in the financial Secretary's letter of 18th December.
Government to agree to provide bridging finance after opening in the event of a shortfall between revenue and repayments (in proportion to its equity interest) due to causes other than political.
SHAREHOLDERS:
1.
2.
Shareholders to confirm their investment to an amount rather than a percentage.
Shareholders to agree to provide bridging finance after opening in the event of a shortfall between revenue and repayments (in proportion to their holdings) due to causes other than political.
E.C.O. 1.:
The Shareholders and Government having reached agreement on the above will jointly propose to B.C.G.D. that :-
(1) A loan will be given to the Company for ten years from the
start of construction repayable 34 years after the start of construction in 14 equal half-yearly instalments bearing interest at 5% p.a.
(2) The loan will be for 75% of the final agreed construction
cost which will include the Company's Engineers' fees
some $12.3 million).
(3) All shareholders agree to provide bridging finance in
proportion to their holdings should a shortfall occur after opening between revenue and repayments due to causes other than political.
(4) Progress payments to be made in parallel and not in series.