GOVERMENT HOUSE HONG KONG.
MON 30 MAR 92 10:54
PG.27
Summary and Conclusion
26
1
47.
the
In
The
Government's
objective
has been to complete
airport project in the most cost-effective way possible.
is
to necessary
order to do this, it
optimize the
benefits Of drawing on funding support from non-Government
The creation of the PAA/AA provides an appropriate
through syndicated loans, export
credit and other financial instruments.
sources.
vehicle for raising debt
Independent financial advisers have concluded that
48.
the
enough
project
to
are likely
to be robust
cashflows expected
enable the AA to raise a substantial amount of
debt without
requiring a full Government guarantee.
The
provision of an attractively
same
cashflowS forecast the
level of return on the equity which the Government will
high
need to provide.
49.
In order to enable the AA to raise the amount of
debt required
a range of Government
support measures
falling short of
providing full
debt
guarantees
will,
nevertheless, be required. The package of support measures agreed with the PAA is designed to avoid all but the most theoretical of contingent Government liabilities which might
continue to exist beyond 30 June 1997.
In all but the most
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