15
(b) it would
be
difficult to
finance in a "low case"
raise more debt
scenario,
so the
maximize borrowings would be
opportunity to
lost if such
the "base case".
a strategy were not pursued in
25.
It
circumstances
is most unlikely that all the adverse
modelled in the "low case" would actually
occur. It was considered prudent, nevertheless, to test the financing plan against a range of possible eventualities in
order to ensure that it is sufficiently robust.
Proposed Outline Agreement with the PAA
26.
on the basis of the cashflows developed and agreed
in the "base" and "low" cases, the Government and the PAA
have reached an understanding on a framework of principles
intended should form the basis for a detailed
which it is
financial agreement
between the two sides. An important
purpose
reasonable basis on
of such
an
agreement
would be to
establish a
which the PAA/AA may solicit lendings
from banks,
credit agencies export
and other private
financial institutions.
It must
therefore provide
an
adequate degree of assurance to potential lenders that the
shareholder (Government) will support the project through to