CONFIDENTIAL
XCC(73)10
10.
機密
The proposal put forward by the last-named company was originally
a purely financial proposal. The proposer has subsequently indicated his intention to join up with another firm specialised in project management, but has not yet submitted further information on this point.
Method of Financing the MTR
15
A broad conclusion which can be drawn from the pro- posals is that, assuming only 50% of total capital costs is covered by export credits, it should just be possible to finance the first four stages, if taken alone, with entirely borrowed capital. The non- export credit portion of the finance required could be made up from a number of sources, e.g.
(a)
(b)
흐흐
(c)
(d)
(e)
:
long-term bond issues in international capital markets;
local issues of bonds or similar loan paper;
long-term borrowings from international financial institutions (e. g. the World Bank and the Asian Development Bank);
medium-term loans from an international
or local banking syndicate; and
short-term bridging loans from the local banking system (and/or the Hong Kong Government itself lending at commercial rates).
The cash-flow analysis at Annex G indicates that, given export credits amounting to $1, 850 million, the first four stages could be financed with $2, 800 million in bonds (six issues of $400 million and two issues of $200 million) and about $950 million in medium- term bank loans.
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Honourable Members will, however, recall from para- graph 102 of memorandum XCC(72)27 at Annex A that the Full System would be financially more viable, in the sense that it would show a better return, than the first four stages alone, and would also bring greater economic and social benefits to Hong Kong. The ultimate aim should, therefore, be to build the Full System if at all possible, and the method of financing the MTR should be determined with this ultimate aim in mind.
CONFIDENTIAL
機密