WEDNESDAY, AUGUST 16, 1978
15
US $19.5 MILLION A.D.B. LOAN FOR
SHA TIN HOSPITAL-POLYCLINIC PROJECT
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THE FINANCIAL SECRETARY, THE HON. PHILIP HADDON-CAVE, TOLD THE LEGISLATIVE COUNCIL TODAY THAT THE ASIAN DEVELOPMENT BANK WOULD PROVIDE A LOAN EQUIVALENT TO US$19.5 MILLION TO HONG KONG TO HELP FINANCE THE FOREIGN EXCHANGE COST OF THE SHA TIN HOSPITAL-POLYCLINIC PROJECT.
MOVING THE MOTION TO AMEND THE LOANS (ASIAN DEVELOPMENT BANK) ORDINANCE TO ENABLE THE LOAN AGREEMENT TO BE SIGNED, MR. HADDON-CAVE SAID THE LOAN WOULD BE REPAYABLE IN 13 YEARS AT AN INTEREST RATE OF 7.7 PER CENT PER ANNUM AND IT ATTRACTS A COMMITMENT CHARGE OF 0.75 PER CENT.
THIS IS THE FOURTH LOAN TO BE RAISED BY THE GOVERNMENT FROM A.D.B. FOR SPECIFIC PROJECTS. THE OTHER THREE LOANS WERE US$21.5 MILLION FOR LOK ON PAI DESALTING PLANT, US$20 MILLION FOR SHA TIN SEWAGE TREATMENT PROJECT AND US$20.5 MILLION FOR SHA TIN URBAN DEVELOPMENT PROJECT.
THE FINANCIAL SECRETARY SAID THE FOREIGN AND COMMONWEALTH OFFICE HAD INDICATED THE WILLINGNESS OF THE BRITISH GOVERNMENT TO PROVIDE THE NECESSARY GUARANTEE FOR THE LOAN AND FORMAL APPROVAL WAS EXPECTED TO BE GIVEN ONCE THE LOAN HAD BEEN APPROVED BY THE BOARD OF DIRECTORS OF THE BANK.
HE ADDED THAT HE REGARDED THE TERMS OF THE LOAN AS SATISFACTORY AND THE LOAN AGREEMENT, WHEN SIGNED, WOULD BE LAID ON THE TABLE FOR INFORMATION OF THE UNOFFICIAL MEMBERS,
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