MTRC CASH-FLOWS FOR THE AIRPORT RAIL
1. Projected cash-flows for the MTRC's operation up to the year
2010 are attached.
2.
The Airport-railway is not being constructed as a stand-alone
project. To do so would not be cost-effective. The attached
financial plan shows the AR construction in the context of the
MTRC's overall operation.
3. The plan is shown first under a mainstream case, which is the
case expected to occur, and then under a downside case. In the
latter case, all the projects risks (no profits from property
development, increased cost, lower revenue from the existing MTR
operation, higher interest rates, higher inflation) are all shown
as occurring throughout the period. The probability of such a
case is extremely low.
A.
All figures are in money of the day. The inflation factors
used by the MTRC in their calculations are different from those
used by the Government: the MTRC must take into account inflation trends in overseas countries where it will order rolling stock,
steel and electrical equipment.