.F. 316
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(e) Method of repayment:' equal principal repayments plus
interest on the outstanding balance (but the Sinking Fund method would also be acceptable).
(f) Capitalisation of interest: although it has not yet been able to make a firm offer, the company has indicated that capitalisation of interest over the grace period would most probably be agreed.
Other Finance
11
Through arrangements made by Intermetro, the Banca Commerciale Italiana has offered to organise an international banking syndicate to provide medium-term bank credits up to a maximum of $900 mn. The exact method of raising this finance, as well as interest rates and other terms, would depend on market conditions prevailing at the time, but the banking syndicate would undertake to try to obtain finance on the best relative terms available at any one time.
Construction/Equipment Aspects
12
Intermetro proposes to begin construction on 1st April 1974, and has indicated a maximum construction period of six years from the date of commencement.
13
The company intends to adopt construction methods which would minimise labour requirements and disruption of surface transport.
14
It will assist in providing training facilities for the MTR Corporation's operations staff. It would also provide for a period of test operations in respect of the rolling stock and E & M equipment supplied.
Additional Work Required of Consulting Engineers
14
Before it could take over the detailed design of the system, Intermetro would require from the Consulting Engineers:
(a) details of soil conditions throughout the network;
(b) details of the nature, location and extent of utility
services;
(c)
details of the nature and type of foundations of buildings fronting or close to the MTR works;
(a)
accurate alignment details;
(e)
accurate plans showing station layouts and giving details and overall dimensions of ventilation shafts and station entrances;
(f)
information on working conditions at each site and the locations of dumping areas; and
(g) performance specifications as regards E & M supplies.
Proposed Sequence of Events
15
Intermetro's proposal to begin construction on 1st April 1974 is predicated on the assumptions that:
(a) it would receive a Letter of Intent by 1st October 1973
signifying the client's intention to negotiate a contract with it;
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/.... (b)