CONFIDENHAL
2.
3.
The Government will co-operate with the Corporation in developing funding
arrangements acceptable to both Government and potential lenders for the LRT project. Specific, minimum requirements are:
recognition that the Corporation will direct funds from its current operations to the LRT project.
an understanding that repayment of the $1.0 billion Government loan need not take place until 1995.
Other types of support may be required by potential lenders and could take the form of:
subordination of all or part of the Government loan to LRT loans.
dividend limitations.
interest payment guarantees.
agreement to retain ownership of the Corporation for a specific period.
project completion guarantees.
standby finance under specific circumstances.
These examples are not exhaustive, and actual requirements cannot be determined until negotiations with funding agencies commence.
The Corporation Ordinance 73/82, suitably amended, will be applied to LRT operations. In particular:
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land required for exclusive railway use, including areas required for depot and terminii, can be vested at no cost to the Corporation, and under the same conditions as the current Ordinance.
the Corporation's borrowing limits be extended from $1.5 billion to, say, $3.0 billion.