TNAG-0565-FCO40-660-Construction-of-an-underground-railway-system-in-Hong-Kong-1975 — Page 79

E

CONFIDENTIAL

AL # 3

3.-

8.

All figures fed into the programme are quoted in terms of

constant 1975 Hong Kong dollars unless otherwise specified.

The

cash flows have been calculated by comparing each year the cash inflow --

from operating revenue, equity subscriptions and interest on surplus

funds with the cash outflow on capital and operating costs and

debt servicing.

The deficit which arises in the early years is covered

by drawing sequentially on loan sources which have been defined in

terms of maximum annual and total availability, currency, maturity

and interest cost. The cash surplus in later years is available for

transfer to the Government.

It is important to note here that the assumed rate of

inflation is 7% p.a. from mid-1975. All costs and revenues and the

maximum loan availabilities are escalated at this rate unless otherwise

specified.

10.

(b) Timing

The first section of the MIS from Choi Hung/Kowloon Bay

to Shek Kip Mei is assumed to be commissioned in September 1979,

and the following section from Kwun Tong to Chater at the end of Karch

1980, in accordance with the Engineer's programme.

There is provision

for the possibility of a few weeks delay in commissioning,

11.

(c) Costs and Revenues

The basic figures used as inputs for the cash flow analysis

are set out in Table 1 below :

機密