CONFIDENTIAL
機密
- 7-
17.
(iii) commitments: funds will require to be raised for a construc-
tion period extending over 41⁄2 years. To raise all these
funds at the outset would incur unnecessary interest costs;
to raise them as required without any advance commitment
would entail some risk that funds would not be available
at the time required, jeopardising continued construction. Sources of funds
Apart from the HK $800 million subscribed as equity by the
Government, the sources of funds available include :
(a) Export Credits: institutions set up by industrialised countries
to support their exports often provide large sums on a long
term basis with early commitment and rates of interest
usually slightly below those ruling in commercial markets.
The terms available to support contracts from France,
Germany, Sweden, UK and Japan have been indicated in con-
versations held on the spot with the relevant institutions,
telex or letter confirmation, and the terms accompanying
tenders already submitted. In each case, 85% of the export
value of the contract would be provided (with, in some
cases, further funds to cover a proportion of local costs)
for 81⁄2 10 years from contract completion at rates of
interest between 7 - 9%. There are indications that
similar terms may be available from Canada, the US and
Denmark. Italy is the only country tendering for civil
contracts from which export credits may be unavailable.
CONFIDENTIAL
機密