0.1.0
3
We
have no doubt that the
Lender exercise
1
construction
will attract a larger number of well qualified
contractors, and that the added competition wil! result
a very keen price for the bridge.
The Construction
Contract approach also opens up
another attractive option for financing the project at a
later stage, that. is to call for competitive bids for the
franchise to operate the bridge after it is completed.
view is that such a tranchise would be attractive and the
proceeds
Our
from the tender exercise could at least match the
cost. of construction.
Thus we have total confidence in the
projects long-term viability.
IL
the
bidders
the project were to be tendered on a BOT basin,
would base their judgement of its viability on
three main factors: the cost of construction, the revenue
which in turn depends on traffic forecasts and the level of
tolls, and the perceived risks involved. We are advised
that there can be a high degree of certainty over the cost
but. that prospective bidders might not
of
construction,
have the same degree of confidence with regard to the other
The continuing crisis in the Gulf and the
1.Wo factors.
world
climate.
economic
situation
have
not helped the commercial
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