FRIDAY, JULY 19, 1991
- 5
BETWEEN NOW AND THE END OF THAT YEAR, THE PAA ALSO ESTIMATES THAT IT WILL NEED SOME $800 MILLION AT MONEY-OF-THE-DAY PRICES FOR FURTHER INVESTIGATIONS AND DETAILED DESIGN OF THOSE PARTS OF THE AIRPORT CONSTRUCTION WORKS (OTHER THAN THE FORMATION OF THE AIRPORT PLATFORM) WHICH IT WILL UNDERTAKE.
THE PAA HAS ALSO REQUESTED FOR AN ADVANCE OF $700 MILLION AT MONEY-OF-THE-DAY PRICES TO MEET IT'S START UP AND OPERATING COSTS BETWEEN NOW AND THE END OF 1992/93.
AFTER DISCUSSIONS WITH THE LEGCO AD [TOC GRUOP ΤΟ STUDY THE FINANCIAL ARRANGEMENTS FOR THE NEW AIRPORT AND RELATED PROJECTS, IT WAS AGREED THAT ONLY HALF THE AMOUNT SOUGHT SHOULD BE APPROVED $350 MILLION.
FUNDING
IN ADDITION, THE PAA WILL SUBMIT ITS LONGER-TERM REQUIREMENTS WHEN A MORE DETAILED BUSINESS PLAN IS AVAILABLE AT THE END OF THIS YEAR OR THE START OF NEXT.
UNDER THIS APPROACH, IT WAS ACCEPTED THAT THE AUTHORITY MAY ENTER INTO FINANCIAL COMMITMENTS IN EXCESS OF $350 MILLION ΤΟ ENABLE IT TO OFFER EMPLOYMENT CONTRACTS AND UNDERTAKE OTHER CONTRACTUAL OBLIGATION SUCH AS THE LEASING OF OFFICES.
THE PROPOSALS AMOUNTED TO
AN ADDITIONAL ADVANCE OF $6.55 WITHIN THE LEVEL OF GOVERNMENT
BILLION TO THE PAA, WHICH WAS WELL FINANCIAL SUPPORT ENVISAGED FOR THE AUTHORITY.
AS THE PAA IS NOT YET IN A POSITION TO BORROW FROM THE FINANCIAL MARKETS, THE ADVANCE WAS APPROVED, SUBJECT TO A DRAW DOWN SCHEDULE TO BE AGREED BETWEEN THE PAA AND THE ADMINISTRATION.
THE
RECOGNITION OF IT TO HAVE SUFFICIENT FUNCTIONS, THE ADVANCES BILLION) BE USED FOR ALL
IT WAS ALSO AGREED THAT, IN RESPONSIBILITIES OF THE PAA AND THE NEED FOR FLEXIBILITY TO CARRY OUT ITS STATUTORY APPROVED TO DATE ($780 MILLION AND THE $6.55 AIRPORT-RELATED PURPOSES SUCH AS THE PAA SAW FIT.
AUTHORITY, ALL THE
ON THE ESTABLISHMENT OF THE FULL AIRPORT ADVANCES MADE TO THE PROVISIONAL BODY WOULD BE CONVERTED INTO THE GOVERNMENT'S EQUITY.
ANY GOVERNMENT DIRECT EXPENDITURE INCURRED FROM OCTOBER 1989 ONWARDS, AND ATTRIBUTABLE TO THE NEW AIRPORT AND NOT REIMBURSED BY THE PAA, WILL ALSO BE CONVERTED INTO GOVERNMENT EQUITY.
THE APRANGEMENTS WERE NOT INCONSISTENT VITH THE PROCEDURES ADOPTED WHEN STARTING UP THE MASS TRANSIT R'İLKAY CORPORATION,
0
16.......