0003160 G.F. 316
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(d) Operating expenses are as estimated by the Consulting Engineers at mid-1970 prices, escalated at 6% p.a. Expenses in the first two years have been adjusted to take account of the cost of MTR Corporation staff transferred from construction to a maintenance function.
(e) Operating revenue consists of:
(f)
(i)
(ii)
traffic or fare revenue, estimated by applying the fare structure briefly described in paragraph 10(a) of memorandum XCS(73)8 to the Consulting Engineers' traffic volume estimates (as adjusted for the first two years in accordance with the revised construction programme); and
other revenue (mainly advertising revenue), estimated at 5% of fare revenue.
The project cash flow represents the sum of columns (a) to (e) above.
(g) Interest Payable is estimated at:
(i) 6.8333% p.a. (i.e. the average of 6%, 6.5% and 8%
indicated by the consortium) in respect of the credit finance provided by the consortium; and
(ii) 8.5% p.a. in respect of other sources of finance
(excluding equity).
The various fees payable for the export credit finance have also been taken into account.
(h) Equity contributed by the Hong Kong Government to the capital
of the MTR Corporation is assumed to be $800 mn.
(i)
It
Contractor's Finance is as indicated by the Consortium. has been assumed that interest on export credits would be capitalised over the grace period (see paragraph 11(f) above).
(j) The figure for Market finance is a residual figure and represents
the system's need for market finance.
The distribution of expenditure and income between years has been determined in relation to the construction programme and completion dates indicated by the consortium.
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The exchange rates used for the purposes of the cash-flow table are the selling rates quoted by the note-issuing banks at the opening of business on 3rd July 1973, i.e. £1 = $13.02, FF1 = HK$1.2515 and DM1 = HK$2.1315.
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