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FRIDAY, NOVEMBER 4, 1994

FC APPROVAL TO BE SOUGHT FOR AIRPORT RAILWAY EQUITY FUNDING

**

TODAY (FRIDAY) THE

SECRETARY, SIR HAMISH MACLEOD, FINANCIAL WELCOMED THE SIGNING OF THE AGREED MINUTE ON FINANCING FOR THE AIRPORT AND AIRPORT RAILWAY BY THE BRITISH AND CHINESE TEAM LEADERS AIRPORT COMMITTEE.

OF THE

HE ALSO

TO

ASK THE

OF THE TRANSIT

THAT THE GOVERNMENT PROPOSED ANNOUNCED FINANCE COMMITTEE LATER THIS MONTH TO APPROVE THE BALANCE MASS GOVERNMENT'S

BILLION EQUITY INJECTION INTO $23.7 RAILWAY CORPORATION (MTRC) FOR THE AIRPORT RAILWAY.

THE

SIR HAMISH SAID: "THIS IS GOOD NEWS FOR HONG KONG. THE FORWARD OF THE AGREED MINUTE CONSTITUTES AN IMPORTANT STEP

AIRPORT AND THE FOR BOTH THE NEW FINANCING

ARRANGEMENTS

SIGNING ON THE AIRPORT

RAILWAY.

"IT CONTAINS

$60.3

FINANCING FIGURES FOR THE TWO PROJECTS BILLION OF GOVERNMENT EQUITY AND $23 BILLION OF PRIVATE SECTOR DEBT AND IT ALSO COVERS OTHER ISSUES THAT WE HAVE BEEN DISCUSSING WITH CHINESE SIDE OF THE AIRPORT COMMITTEE.

THE

"THE $60.3 BILLION EQUITY WILL BE DIVIDED BETWEEN $36.6 BILLION THE FOR THE AIRPORT AND $23.7 BILLION FOR THE AIRPORT RAILWAY, WHILE $23 BILLION DEBT WILL BE DIVIDED BETWEEN $11.6 BILLION FOR THE AIRPORT AND $11.4 BILLION FOR THE AIRPORT RAILWAY.

"BY CONFIRMING THE

LEVEL OF GOVERNMENT EQUITY, THE AGREED APPROVE AN MINUTE CLEARS THE WAY FOR US TO ASK FINANCE COMMITTEE TO

THIS IS THE INJECTION OF $23 BILLION EQUITY FOR THE AIRPORT RAILWAY. BALANCE OF THE PROJECT'S $23.7 BILLION TOTAL GOVERNMENT EQUITY, TAKING INTO ACCOUNT $715 MILLION VOTED BY FINANCE COMMITTEE EARLIER THIS YEAR FOR THE IMMERSED TUBE TUNNEL.

KEY

"THE EQUITY INJECTION WILL FACILITATE THE START OF MAJOR WORKS, ENABLING THE MTRC TO TAKE UP OPTION LETTERS THAT IT HAS SIGNED ON CONTRACTS.

SIDE ON "WE NOW NEED TO MOVE AHEAD URGENTLY WITH THE CHINESE

AN TWO PROJECTS' FINANCIAL SUPPORT AGREEMENTS (FSAS), WHICH FORM ESSENTIAL PART OF THE OVERALL FINANCING ARRANGEMENTS.

THE

"THE MINUTE RECOGNISES AIRPORT AUTHORITY

FSAS FOR THE THE IMPORTANCE OF THE

MASS TRANSIT (PAA) AND THE

RAILWAY PROVISIONAL

AS ANNOUNCED

QUICKLY AS IT CORPORATION.

THAT THEY WILL BE SAYS

IN THE PRIVATE POSSIBLE SO THAT THE BODIES CAN GO OUT AND BORROW SECTOR AS SOON AS POSSIBLE, HE SAID.

ON LAND ISSUES, SIR HAMISH SAID A COMMON VIEW HAD BEEN ON THE PRINCIPLES FOR THE USE OF LAND FOR THE NEW AIRPORT AND RAILWAY.

REACHED AIRPORT

THEY

HAVE WHICH

"THE SPECIFIC ARRANGEMENTS WILL BE ANNOUNCED AFTER BEEN FINALISED BY THE SINO-BRITISH LAND COMMISSION AT A MEETING WILL TAKE PLACE SOON.

/"WE ALSO

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