40
Conclusion
Mr President, the Administration is convinced that as a result of a highly competitive tendering exercise, the Bill before members provides a very attractive package allowing the construction of this facility in the shortest possible time and at the lowest cost to users over the whole franchise period. It should be noted that the Company will have to bear considerable market risks, for example with regard to traffic volumes, interest rates during the construction period, possible cost overruns, and unforeseen delay in the construction schedule. The Government is not required to provide any financial support or guarantees to the Company, whether in respect of traffic volume, the completion dates of connecting infrastructure or any commitment not to build competing infrastructure in future.
The target Base Case IRR of 15.18% for the project compares very favourably with other similar BOT projects in the region, which require IRRs in the range of 15 to 25%, and which in most cases include Government support or guarantees.
Within the limits imposed on us by the need to maintain strict confidentiality during the tendering and negotiation process, I have endeavoured to keep members of this Council informed of progress in drawing up the franchise and of its key terms and conditions. Now that the Bill has been published, I look forward to working with the Bills Committee in seeking Members support for the early enactment of this legislation to grant the franchise.
Mr President, with these remarks, I commend the Bill to Honourable Members.
End/Wednesday, March 8, 1995
Funds sought for government services
Following is the speech by the Secretary for the Treasury, Mr Donald Tsang, in moving the Vote on Account Resolution in the Legislative Council today (Wednesday):
Mr President,
I move the motion standing in my name in the Order Paper.
No comments yet.
Private notes are available after approval.