WEDNESDAY, NOVEMBER 29, 1978
22
SUPPLIER CREDITS FOR MTRC
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THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY) APPROVED A MOTION TO GIVE AUTHORITY FOR A GOVERNMENT GUARANTEE TO ENABLE THE MASS TRANS IT RAILWAY CORPORATION TO TAKE ADVANTAGE OF SUPPLIER CREDITS, TOTALLING HK$950 MILLION, OFFERED IN RESPECT OF FOUR LARGE CONTRACTS.
IN MOVING THE MOTION, THE FINANCIAL SECRETARY, THE HON. PHILIP HADDON-CAVE SAID THAT THE FOUR CONTRACTS FORM 80 PER CENT OF THE CIVIL ENGINEERING WORKS FOR THE EXTENSION OF THE RAILWAY TO TSUEN WAN, INCLUDING SEVEN STATIONS AND CONNECTING TUNNELS.
HE POINTED OUT THAT EACH CONTRACT HAS BEEN AWARDED AT FIXED PRICES AND THE SUPPLIER CREDITS IN HONG KONG DOLLARS, SO THE GOVERNMENT'S COMMITMENT IN RESPECT OF THE GUARANTEE WOULD BE ENTIRELY FREE FROM EXCHANGE RISKS.
+THE INTEREST RATES WILL BE COMPETITIVE AND THE SUPPLIER CREDITS WILL BE REPAYABLE OVER A PERIOD OF 8-1/2 YEARS, HE ADDED.
THE GUARANTEE BROUGHT THE GOVERNMENT'S TOTAL GUARANTEE COMMITMENT IN RESPECT OF THE MASS TRANSIT RAILWAY CORPORATION TO HK$7,840 MILLION.