S D
(B)
(C)
(i)
(ii)
the total project cost as calculated on the Completion Date after taking into account the provisions of paragraph 4(C) is less than the highest project cost taken into account in respect of any drawing of callable equity pursuant to sub-paragraph 2(A)(i) prior to the Completion Date; and/or
the raising of real estate revenues referred to in paragraph 2(D) plus any drawings of callable equity pursuant to sub-paragraph 2(A)(iii) is greater than the cumulative total amount for 1997/8 set out in Annex A.
The amount of the standby facility which is outstanding (after taking account of any repayments as mentioned in sub-paragraph (A)) at the Completion Date shall be converted at par into equity shares of the Authority on or as soon as practicable after the Completion Date.
For the purpose of calculating the amount to be converted into equity shares at the Completion Date it may be necessary to estimate the final amount of project cost. In that event, the parties will consult together on how such an estimate should be arrived at, and whether by an independent consulting engineer or other professional adviser, or otherwise.
5.
6.
7.
8.
Kai Tak
Government will procure that the Authority will become entitled to the Kai Tak Surplus if the new airport is not opened on the Target Date.
Passenger Terminal Charge ("PTC")
(A)
(B)
With effect from the date when the new airport is first operational ("the Start-up Date") the Authority will institute a PTC at the new airport which (subject to the approval of Government) may be increased at the Authority's discretion. Government shall approve any such increase unless it would result in the breach of an international obligation binding upon Government.
Government will institute a PTC at Kai Tak Airport before the Start-up Date and no later than the Target Date. In the event of project delay, revenues earned from the PTC at Kai Tak after the Target Date and before the Start-up Date will accrue to the Authority. Government will procure that on the Target Date the total amount of PTC and Air Passenger Departure Tax ("APDT") payable by a passenger will not exceed $150 (March 1991 $) of which APDT shall represent not more than $50 (March 1991 $).
Dividend Payments
Government will agree that the Authority may defer dividend payments in such a manner and to such an extent as lenders of Project Debt may reasonably require.
Completion and Debt Service Undertakings
(A)
(B)
Government will procure the completion of the new airport.
If, after the application of all amounts received by the Authority in respect of equity shares and any Kai Tak Surplus (including Passenger Terminal Charge), and after the application of its own available resources, the Authority is unable
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