10.
With an estimated target Internal Rate of Return (IRR) of 15.18 per cent, it compared very favourably with other similar "Build, Operate and Transfer" projects in the region, which produced IRRs of between 15 per cent and 25 per cent.
It was lower than the IRR for the Western Harbour Crossing.
The spokesman said this was a good deal. The toll levels were highly competitive. The Government would not be required to give any guarantee or financial support to the project.
The Company would complete the much needed road facility at no expense to the tax payer. Government resources that would otherwise have had to be allowed to this vital project can be used for other public projects which cannot privatised.
The Bill is modelled upon the Western Harbour Crossing Ordinance. The following improvements have also been achieved during the negotiations with the company:
Government will have the right to impose financial penalties on the franchisee for any default or breach of the enabling Ordinance and the Project Agreement during the operating period;
Government will have the right to direct the franchisee to make by-laws in relation to safety matters;
The franchisee will make public financial and operational information as reasonably requested by the Government; and
The Company will have to treat all applications for installation of utilities within the toll area in a fair and similar manner.
The Bill will be introduced to the Legislative Council on March 8.
End/Friday, March 3, 1995
No comments yet.
Private notes are available after approval.