TNAG-0424-FCO40-470-Construction-of-an-underground-railway-system-in-Hong-Kong-1973 — Page 225

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(f)

(g)

(h)

(i)

- 7

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XCC(73)10

in view of the higher offshore content (i. e. procurements of goods and services overseas) which could be achieved under such a contract. But this probable advantage would have to be weighed against the probable disadvantage of a higher overall contract price;

national export credit agencies are likely to offer their best terms if companies or groups within their countries secure a significant proportion of the work involved;

the balance of the total capital requirement can be made up from a number of alternative sources on terms which, by present indications, would be acceptable;

the inclusion of an equity element in the overall financial package will ease the project's cash flow, reduce borrowings, and engender market confidence in the project; and

while all the proposals received have been presented in the context of the first four stages, they can probably be extended to cover all the nine stages of the Full System on roughly the same basis, The assembly of the overall financial package for the Full System would, however, present difficulties at this point in time.

G

Selection of the More Attractive Proposals to be Further Considered

13

As a result of the exploratory discussions held with the proposers concerned, it has become clear that five of the thirteen proposals summarised at Annex Gfall short, in one way or another, of the considerations set out in paragraph 11 above, or are other- wise substantially less attractive than other proposals within the same category. These five proposals are unlikely to be improved upon to a sufficient extent for them to be accepted, and it is thought that they should not be pursued further. The proposers in question, and the present deficiencies in their proposals, are as follows:

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