XN000022-1975-10-22 — Page 17

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WEDNESDAY, OCTOBER 22, 1975

IN ADDITION, THERE WERE PROVISIONS FOR A FURTHER HK$500 !ILLION OF CREDIT FROM TWO LOCAL BANKING SYNDICATES TO BE 'ADE AVAILABLE TO LOCAL CONTRACTORS TO HELP FINANCE CONTRACTS WHICH THEY MAY WIN. THIS FACILITY IS, IN EFFECT, A LOCAL SUPPLIER CREDIT TO THE CORPORATION.

+TAKEN TOGETHER WITH EXPORT CREDITS AND THE LOCAL SUPPLIERS' CREDITS, THE STANDBY FACILITIES WILL BE SUFFICIENT IN THEMSELVES TO ENABLE THE CORPORATION TO MEET ALL ITS CONTRACTUAL LIABILITIES DURING THE CONSTRUCTION PERIOD,+ MR. HADDON-CAVE SAID.

HE ADDED, HOWEVER, THAT THE CORPORATION WOULD FROM NOW ON BE SEEKING FAVOURABLE OPPORTUNITIES TO GO TO THE OPEN MARKET FOR LONG TERM FUNDS AND. TO THE EXTENT THEY ARE SUCCESSFUL, SOME OF THESE STANDBY FACILITIES WOULD NOT NEED TO BE DRAWN.

THE FINANCIAL SECRETARY SAID THE AUTHORITY HAD REASSESSED THE VIABILITY OF THE WHOLE PROJECT AND ESTIMATES, TOGETHER WITH A REASSESSMENT OF THE FARE STRUCTURE AND OTHER REVENUE, CONFIRMED THAT THE TOTAL REVENUE LIKELY TO BE GENERATED WHEN SET AGAINST CONSTRUCTION AND OPERATING COSTS AND FINANCING CHARGES -- WOULD BE SUFFICIENT TO MAKE THE SYSTEM VIABLE.

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