.323
0003230
CONFIDENTIAL
TEX 密
redit terms previously indicated by Intermetro remained on offer in respect of the Italian portion.
7
In reply to a further question from Mr Haddon-Cave, Dr Piccagli said that, in relation to Alternative 1, the ceiling price represented about 142% of the base price. In other words, the ceiling price of HK 5,876 million was derived from a base price of HK34,140 million. Furthermore, the ceiling price would be increased or decreased by HK$173.6 million for each percentile difference in the rate of escalation. Thus, applying a 5% p.a. escalation factor to the base price of HK34,140 million would result in a ceiling price of HK$5,008 million, while an 8 p.a. escalation factor would result in a ceiling price of HK$5,529 million. The Anglo-Italian Group were, in this connection, amenable to taking any of the lower figures as the ceiling price, so long as the "threshold rate of escalation" (i.e. the rate beyond which escalation would be treated as a case of force majeure) was correspondingly lowered.
8
Mr Haddon-Cave said he found it difficult to see that there should be any necessary relationship between the assumed rate of escalation and the "threshold rate", and asked whether the latter had been based on an assessment of likely economic circumstances over the next few years or on a more theoretical judgment of mathematical probabilities. Dr Piccagli said the proposed "threshold rate of 10% was based on a combination of two considerations, namely:
(a) that it should be reasonably realistic in terms of recent
(b)
economic circumstances; and
that it could be offered to the MTSG as a tenable basis upon which the MTSG could accept that a rate in excess of the "threshold rate" would be beyond reasonable expectations and should be treated as a case of force
majeure.
Mr Haddon-Cave said he still could not understand why it was not possible, for example, to use 10% as the "threshold rate" but to 8 in determining the ceiling price. Dr Piccarli said use, say, that, if the Anglo-Italian Group were required to be committed to a ceiling price now, the price would have to be as stated in the counter-bid. When more information had become available at a later
/.... sbage,
CONFIDENTIAL #
機密