CONFIDENTIAL
over, the following figures illustrate the effect of injecting various com- binations of aid and credit into the whole project. Capitalisation of pre- commissioning interest is assumed in all cases.
Table 1
Total Escalated Package (£1616.35m)
Subsidy element arising from finance package including £90m on grant terms:
(£m)
A
B
C
D
E
F
Aid
Discounted
Provision
Aid
Actual
HMG Subsidy
Discounted
Discounted
(B+D/E)
HMG
Value of
Subsidy
Subsidy
Drawdown
Element
Dis-
count
90
63.35
677.25
252.46
1022.67
30.78%
Rate
12.5%
Dis-
count
90
59.43 1354.51
410.15
952.31
49.31%
Rate 15%
Amount of aid required (NPV in brackets) to provide discounted debt service cost at 10% equivalent to that which would have arisen if the contract was supported at a range of interest rates between 72% and 10%
Dis-
10%
count
0
Rate
12.5%
(0)
9.5%
£72.2m
(£50.8m)
9%
8.5%
8%
£141.9m
(£99.9m)
£209.3m
£274.3m
(£147.3m)
(£193.1m)
£90m of aid simulates an interest rate of 9.37%
770%
£306.0m
(£215.4m)
10%
9.5%
9%-
8.5%
8%
72%
Dis-
count
O
£72.8
£143.2
£211.1
£276.8
£308.7
Rate
15%
(0)
(£48.1)
(£ 94.6)
94.
(£139.4)
(132.8)
(£203.8)
£90m of aid simulates an interest rate of 9.39%
the.