Annex C
Commercial Viability of the Tate's Cairn Tunnel
Introduction
1.
The purpose of this annex is to summarise the
assumptions used in the base case for testing the commercial
viability of the privatisation of the Tate's Cairn Tunnel and
to list the results of the various sensitivity tests performed
to appraise the impact of variations to key assumptions in
order to assess the robustness of the conclusions indicated in
the base case.
Base case assumption
2.
below:
Major assumptions of the base case are summarised
(a)
All figures in 1986 dollars;
(b)
Franchise period 30 years;
(c)
No royalty payable to Government;
(a)
(e)
Construction and other pre-operating costs
$1,497 m.;
Annual operating cost $22 m.;