CONFIDENTIAL
CROSS-HARBOUR TUNNEL: PRESS RELEASE
"Agreement in principle has been reached between The Cross- Harbour Tunnel Co. Ltd. of Hong Kong and Lloyds Bank Ltd. on the provision of a loan to finance the construction of the Hong Kong Cross-Harbour Tunnel. The loan, which will be guaranteed by E.C.G.D., will be for a maximum of £14 million.
"The Tunnel Company are now proceeding to detailed negotia- tions with a consortium led by Costain Civil Engineering Ltd. and it is hoped that the contract will be signed next month. The loan will then bear interest half-yearly at 5 per cent per annum and will be repayable in half-yearly instalments over seven years from the estimated date of completion of the Tunnel.
"The prospective shareholders of The Cross-Harbour Tunnel Co. Ltd. are Wheelock Marden & Co. Ltd., Hutchison International Ltd., The Government of Hong Kong, The Hongkong and Shanghai Banking Corporation, Kwong Wan Ltd., and Sir Elly Kadoorie Successcrs Ltd. The shareholders will severally guarantee the loan, and the Tunnel Company will also be giving a floating charge over the Company's assets.
"The tunnel will provide a much-needed traffic link between Hong Kong Island and the City of Kowloon, a crossing which has up to now been served only by vehicular ferries. The four-lane tunnel will be built by the immersed tube method, the first to be built by this technique in Asia and thought to be the longest of its type in the world. The consulting engineers to the project are the British firms of Scott and Wilson, Kirkpatrick and Partners and Freeman, Fox and Partners."
CONFIDENTIAL
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