STAGE 2 OPTIMUM FINANCING PLAN AND EQUITY STRUCTURE
Introduction
This stage of the study overlaps with the previous stage and
itself provides data essential to the completion of the financial
evaluation and sensitivity analysis. Its central purpose, however, is
to design a financing plan to determine the minimum equity
contribution by Government that will allow debt to be amortised by
application of revenues.
The capital costs will be reviewed from an additional
perspective, investigating their timing and nature so that the full
range of financing techniques and sources can be identified and
explored. At the same time consideration will be given to sources of
equity and Government will be consulted as to any policy
considerations affecting the structure of the Airport operating body
and the balance of government/public participation.
A range of possible models will be developed and these will be
tested as part of the overall sensitivity analysis to reach an optimum
choice which can then be refined.
In carrying out the study, consultants should assume that
present arrangements for the administration of the whole of Hong Kong
will continue but, in examining sources of finance and the response of
the markets to the Airport project, they will advise on the likely
attitudes of potential lenders
if the status of Hong Kong post-1997 has not been settled at the
This aspect of the study will be
time finance is being sought.
limited to Government and the consultants who will not seek outside
views or advice.
See 122.26.6
6