XN000022-1975-10-22 — Page 18

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WEDNESDAY, OCTOBER 22, 1975

H.K. TO BORROW EQUIVALENT OF US$20 M. FROM ADE

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HONG KONG IS TO RECEIVE A LOAN EQUIVALENT TO US$20 MILLION FROM THE ASIAN DEVELOPMENT BANK TO FINANCE A SUBSTANTIAL PORTION OF THE FOREIGN EXCHANGE COST OF THE HK$190 MILLION SHA TIN SEWAGE TREATMENT PLANT (STAGE 1).

THIS WAS ANNOUNCED TODAY BY THE FINANCIAL SECRETARY, THE HON. PHILIP HADDON-CAVE, WHEN HE MOVED A MOTION UNDER THE LOANS (ASIAN DEVELOPMENT BANK) ORDINANCE TO ENABLE THE GOVERNMENT TO RAISE THIS LOAN.

THE FINANCIAL SECRETARY SAID NEGOTIATIONS HAD BEEN SUCCESSFULLY CONCLUDED AND THE A.D.B. WAS PREPARED TO MAKE THE LOAN IN VARIOUS CURRENCIES. THE LOAN WOULD BE REPAYABLE OVER TEN YEARS FROM MARCH 1, 1981 AT AN INTEREST RATE OF 9-1/2 PER CENT PER ANNUM CHARGEABLE ON THE AMOUNT OF THE LOAN WITHDRAWN AND THE OUTSTANDING BALANCE. THERE WAS ALSO A COMMITMENT CHARGE OF 3/4 PER CENT, HE SAID.

MR. HADDON-CAVE SAID HE REGARDED THE TERMS SATISFACTORY AND THE LOAN ITSELF WOULD EASE THE TASK OF FINANCING THE CONSTRUCTION OF THE SHA TIN SEWAGE TREATMENT PROJECT (STAGE 1) ESTIMATED TO COST $190 MILLION.

HE SAID THAT WHILE THE NEGOTIATIONS WERE TAKING PLACE, PLANNING FOR THE PROJECT, INCLUDING DRAWING UP OF DETAILED TECHNICAL SPECIFICATIONS WERE PROGRESSING SIMULTANEOUSLY, AND IT WAS EXPECTED THAT INVITATIONS FOR TENDERS FOR THE PROJECT WOULD BE ISSUED IN THE LAST QUARTER OF 1975/76.

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THE AIM OF THE MOTION, WHICH WAS APPROVED, WAS TO AMEND THE FIRST AND SECOND SCHEDULES OF THE LOANS (ASIAN DEVELOPMENT BANK) ORDINANCE WHICH ENABLES THE GOVERNMENT TO RAISE LOANS FROM THE A.D.B. FOR SPECIFIC PROJECTS LISTED IN THE FIRST SCHEDULE.

INITIALLY, THE FIRST SCHEDULE OF THE ORDINANCE AUTHORISED THE GOVERNMENT TO BORROW AN AMOUNT EQUIVALENT TO US$21.5 MILLION FOR THE CONSTRUCTION OF THE SEA WATER DESALTING WORKS AT LOK ON PAI.

THERE ARE PROVISIONS IN THE ORDINANCE FOR THE LEGISLATIVE COUNCIL TO AMEND THE SCHEDULE BY RESOLUTION TO AUTHORISE THE RAISING OF FURTHER LOANS.

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