CONFIDENTIAL

- 11 -

Table 2

Projected Cash Flow for the Modified Initial System

(HK Million)

(

(1)

Capital Cost

(2) Operating

(3)

Year

(Incl. Equipment

Cost

Net Interest

(4) -Total Cash

(5) Gross

(6)

(7)

Out Flow

Revenue

Equity

Net Flow

(8)

Accum. Surplus after

Loan Redemption

replacement from 1981)

1976

1,519

25

13

1,557

(803)

754

?

1,238

19

90

1,347

(4)

1,343

8

1,500

19

217

1,736

(6)

1,730

9

767

17

385

1,169

(12)

(14)

1,143

80

177

123

492

792

(391)

(35)

366

1

279

164

528

971

(679)

(38)

254

2

179

548

727

(796)

(41)

(110)

3.

12

194

575

781

(879)

(44)

(142)

13

210

517

740

(970)

(48)

(278)

14

227

490

731

(1,070)

(52)

(391)

6

15

246

453

714

(1,179)

(56)

(521)

7

16

267

405

688

(1,294)

(60)

(666)

8

17

289

344

650

(1,413)

(64)

(827)

9

18

314

281

613

(1,542)

(929)

(40)

90

19

341

201

561

(1,680)

(1,119)

(453)

1

21

370

116

507

(1,832)

(1,325)

(1,228)

2

22

402

19

443

(1,996)

(1,553)

(2,514)

112

436

(83)

465

(2,177)

(1,712)

(4,057)

121

475

(185)

411

(2,373)

(1,962)

(5,981)

5

130

516

(303)

343

(2,560)

(2,217)

(8,189)

6

140

561

(432)

269

(2,753)

(2,484)

(10,664)

7

151

611

(570)

192

(2,961)

(2,769)

(13,424)

8

665

(720)

(55)

(3,185)

:

(3,240)

(16,661)

9

725

(895)

(170)

(3,428)

(3,598)

(20,256)

2000

790 (1,090)

(300)

(3,691)

(3,991)

(24,244)

1

861

(1,297)

(436)

(3,974)

(4,410)

(28,654)

2

940

(1,516)

(576)

(4,282)

(4,858)

(33.512)

1,025

(1,759)

(734)

(4,615)

(5,349)

(38,861)

1,119

(2,014)

(895)

(4,975) •

(5,87)

(44,731).

Note: Figures in brackets represent cash inflows.

Year in which accumulated surplus exceeds outstanding loans.

CONFIDENTIAL

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