0003160 G F. 316
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3
(b) Drawdown: spread over the construction period in accordance
with a drawdown schedule to be drawn up on the basis of the consortium's production programme.
(c)
Interest and charges: interest would be at 6%, 6.5% and 8% per annum for the British, French and German portions respectively.
be payable:
(i)
(ii)
(iii)
In addition, the following fees would also
a once-for-all commitment fee of 1% flat on the total amount of credit (same for all three countries);
a once-for-all management fee of 0.25% flat on the total amount of credit (same for all three countries except that, in the case of the British portion, this fee is called a 'negotiating commission'); and
a management fee (in respect of the British portion only) of 0.05% per annum on the balance of credit outstanding from time to time (payable throughout the life of the credit).
(d) Repayment: in 24 consecutive semi-annual instalments
commencing six months after commissioning of Stages 1.4.
(e)
Method of repayment: semi-annual instalments of equal principal repayments. (Interest on the outstanding balance is payable quarterly in arrears).
(f) Capitalisation of interest: the consortium have stated that the export credit agencies in their respective countries would be prepared to match terms with competitors in offering capitalisation of interest over the grace period.
Other Finance
12
The international banking group associated with the consortium (see paragraph 1 above) are prepared to organise syndicated bank loans, roll-over Eurocurrency credits and other market finance to the extent required.
Construction/Equipment Aspects
13
The consortium propose to begin construction nine months after the issue of a Letter of Intent (see paragraph 17(a) below). They expect to complete construction in five years.
14
They estimate that a peak labour force of approximately 6,000 workers (including 400-450 expatriates) would be required.
15
They will assist in organising and/or providing training facilities for the MTR Corporation's operations staff. They 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
16
Before they could take over the detailed design of the system, the consortium would require from the Consulting Engineers:
(a) details of soil conditions throughout the network;
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/.... (b)