EXPORT CREDITS GUARANTEE DEPARTMENT
PO Box No 272 Aldermanbury House Aldermanbury London EC2P 2EL
Telex 883601
Telephone 01-606 6699 ext
E A Whitear Esq Treasury Chambers
Parliament Street
London
SW1P 3AG
PORT
CREDITS
GUARANT
NTLE
Your reference
AEF3 20/27/0117/68/02
Our referencs
SP/PFG/440981
Date
2/2/29
DEPARTA
Ĉ copy to there
On the 15 November 1978 you authorised a pre-shipment finance facility of £1,5m in support of Drake & Scull's potential contract for the liong Kong Mass Transit Railway.
Drake & Scull have since tendered for a complimentary contract (No 364) in addition to that for which support was originally agreed (ie No 363).
In the final analysis their bid for contract 363 was at the level of £11.136m and that for contract 364 £6.878m - both bids totalling £17.366m. The combined cash flow for performing the contracts shows a deficit of £1.75 which cannot be funded from normal commercial sources. Of this a total of c.£1m will be required as cash deposits to support the performance bonds required and the balance as production finance for the contract.
Thus an increase of £0.25m will be required on the PSF facility previously authorised in the event both contracts are awarded. We consider the two contracts to be within the capabilities of Drake & Scull and recommend that an increased offer of a PSF facility up to £1.75m should be made to them. I should be grateful for your authority for this.
PAF FIELD
Сс
Mr D Shilson
Mr M Z Waslewski
BOE Do I
Mr M F Hodgkiss
Mr W J Rumble
Paul Twyman
(Mr K W Cotterill.
(Mr E Panton
(Mr AJ Somerville (Mr G Breach-
C. Birch
F CO
DOT E C G D
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