CONFIDENTIAL
ANNEX A
GUANGDONG PROJECT
Subsidy Element involved in the provision of Interest Subsidy
Conventional Island, Escalated Cost £598.44m
:
Actual HMG
Subsidy
Discounted HMG Subsidy
Subsidy Element
£m
£m
%
124.08
45.13
11.02
A. Present Offer
(85% + local costs)
B. Alternative Offer
157.21
53.86
13.15
(85%
Capitalisation)
C. Proposed Offer
184.95
63.37
15.47
(85% + local costs
+ capitalisation)
NOTE:
Discount rate used is the current long term dollar bond rate of 11.6%