CONFIDENTIAL
機密
XCC(73)10
(a)
(b)
(c)
(d)
8
First National City Bank/Merrill Lynch, Pierce, Fenner and Smith, Incorporated
The Companies have not submitted a comprehensive financing plan for the MTK project, and are interested mainly in organising and providing syndicated bank bars. While their proposal could be dovetailed into another financial proposal, it cannot stand alone as a proposal for organising the provision of finance for the entire project. The Companies' resources could, however, still be tapped when required.
The Crown Agents for Overseas Governments and Administrations
The financing plan put forward by this proposer contains a basic error of fact. The terms which the proposer feels capable of securing are also rather less attractive than those indicated by most other proposers.
Philipp Holzmann AG
This proposer is a firm of civil engineers who has proposed to undertake the complete constr- uction and equipment of the MTR, but has not yet organised a sufficient consortium to do so. The terms of contractor finance indicated by this proposer are, on the whole, less attractive than those indicated by other consortia. In particular, the proposer has indicated that contractor finance would be provided only if a guarantee from a first- class western bank is available. Such a guarantee would add substantially to the cost of the finance provided (which, in itself, is already 0.5 1 percent higher than that indicated by most other consortia).
International Joint Venture
This proposer envisages a combination of financing, project management and the letting of the operation of the MTR to a private company. While this proposal could bring into the project a greater amount of private equity, and would minimize the Government's involvement in the MTR, it would have offsetting disadvantages in that the profits demanded by a private operating company could only be obtained by:
CONFIDENTIAL
機密