TNAG-0426-FCO40-472-Construction-of-an-underground-railway-system-in-Hong-Kong-1973 — Page 125

0003160 G.F. 316

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Government's Requirement

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;

(b) Interest and charges should not exceed

6.5% p.a. all-in;

(c) the grace period should be at least

equal to the construction period for Stagos 1-4;

- 5-

Present Indications (as at 5th December 1973)

Japanese

56.3% of ceiling price

Yes

No

Anglo-Italian

H.K. Metro Constructors

Depends on contract price

Yes

No

Yes

Yes

Yes

(a) the repayment period should be at

least 12 years;

Yes

No

Yes

(e) the method of repayment should preferably

be on a Sinking Fund basis;

No

Negotiable

Negotiable

(f) capitalisation of interest:

(i) must be available over the full

grace period, and

Yes

Yes

Yes

(ii) should be at no higher interest

rate and no shorter repayment period than for the capital sum;

Yes

Yes

Yes

(g)

a Government guarantee must not be required.

Required

Not required

Not required

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