M
In Morrice I
Мошка Mr Willynso.
166
81
CONFIDENTIAL
DESKBY 01010OZ
FM DTI 311746Z JUL 80
NO
DIC TRISH
2.
D.O.I
AUG 1980
K129
по
No 26.8.
HKED
TRED
TELEGRAM NUMBER INDUS 219 OF 31 JULY
TO IMMEDIATE HONG KONG
FROM BROWN.
(78)
CASTLE PEAK B STATION: YOUR INDUS 148 PARA 4.
THE FOLLOWING FIGURES MUGHT BE USED FOR PLANNING PURPOSES. COST ESCALATION PREMIUM MAY BE ABOUT POUNDS 30 MILLION, AND BUYER CREDIT
PREMIUM ABOUT POUNDS 20 MILLION. THESE ESTIMATES ARE EXTREMELY
ROUGH BECAUSE THE FINAL AMOUNTS DEPEND ON LENGTH OF CONSTRUCTION
PERIOD, PERIOD OF LOAN, DRAWDOWN SCHEDULE, AND OTHER VARIABLES.
IT IS THEREFORE IMPOSSIBLE TO GIVE A DEFINITIVE ANSWER TO YOUR QUESTION AT THIS STAGE. WE DO NOT UNDERSTAND THE REFERENCE TO FIGURES QUOTED BY TAYLOR. THE FORMULA FOR COST ESCALATION IS
2 PER CENT PER ANNUM UPTO THE POINT WHEN GOODS ARE SHIPPED, AND IS CALCULATED ON THE ELIGIBLE VALUE OF THE PROJECT WHICH IN THE ABOVE EXAMPLE IS ASSUMED TO BE POUNDS 375 MILLION WHICH WE UNDERSTAND TO BE THE REVISED GEC PRICE.
DIHQ
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