TNAG-0424-FCO40-470-Construction-of-an-underground-railway-system-in-Hong-Kong-1973 — Page 272

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Steering Group's Requirement

(g) Cases of 'force majeure' must be clearly defined

and limited.

Present Indications (as at 20th July 1973)

Japanese

Italian

A/F/G

British

Negotiable

Negotiable

Negotiable

Negotiable

IV.

Payment Terms

(a)

Exact payment terms required by the consortium must be defined.

Not fully

Yes

Not fully

Not fully

(b) Payments, once made, must not be subject to further

escalation.

Not applicable

Agreed

Agreed

Not agreed

f

V. Export Credits/Consortium Finance

Having regard to III(f) above:

(a) the amount should be a minimum of 60% of the

final contract price;

Yes

Tes

Yes

Yes

(b)

interest and charges should not exceed 6.5% p.a. all-in;

Not known

Yes

No

Yes (?)

(c)

the grace period should be at least equal to the construction period for Stages 1-4;

Yes

Yes

Negotiable

Yes

(a)

(e)

the repayment period should be at least 12 years; the method of repayment should preferably be on a Sinking Fund basis;

Yes

Negotiable

No (9 years)

Negotiable

Yes

Yes

Negotiable

Negotiable

(f) capitalisation of interest:

(i)

must be available over the full grace period, and

Yes

Negotiable

Negotiable

Yes

(ii)

should be at no higher interest rate and no shorter repayment period than for the capital sum;

No

Negotiable

Negotiable

Yes

(g)

a Government guarantee must not be required.

Required

Not required

Not required Not required

0003160 G.F. 316

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