GOVERMENT HOUSE HONG KONG.
MON 30 MAR 92 10:51.
PG.24
23
contingent liability on the future Government.
Instead the
Agreement
comfort provides
to
lenders in the event of
failure to complete by the targetted opening date, by
crediting the AA with
operation Of Kai Tak.
below that
the
surplus from the extended
Unless traffic were to fall well
expected or it proved impossible to introduce a
suitable level, this surplus will be adequate to
to meet its debt service obligations (as
PTC at a
enable the AA
illustrated at
Annex C).
But the Agreement recognizes that
in the unlikely event that, after the application of the Kai
Tak surplus and of all other resources available to it, the
Authority were still
Government would fund
shortfall in its debt
the airport.
unable to service its debt, the
the Authority to the extent of the
service ability until completion of
42.
It is considered
essential that this undertaking
be given by Government to meet the demands of lenders to the
AA.
CashflowW analysis indicates that even in adverse
circumstances of a lengthy project
that this
undertaking
delay, it is unlikely
would result
in additional funding
Government.
being drawn down from
•
But the undertaking,
nevertheless, creates a potential contingent liability for
the Government of the Special Administrative Region in the
event of extremely
adverse
circumstances in which all the