TNAG-1175-FCO40-1477-Proposed-replacement-airport-for-Hong-Kong-at-Deep-Bay-or-Ch-1982 — Page 122

Consideration of these funding sources will be subjected

to a process of refinement in consultation with the

Steering Group throughout the consultancy period.

6.1.3

Aid or similar programmes

6.2

6.3

6.3.1

Commercially based funding

Consultants will consider what resort could and should be

made to the commercial lending market. It will be

important to strike the optimum balance between Euro-

currency and local finance, to ascertain whether the issue

of Euro-dollar bonds or other capital market instruments

would be appropriate or possible for a project of this

nature, and to form a view as to the impact of floating

market rates on the project cash flow.

Capital markets

The following sources will be considered :-

Bond markets

(1)

Euro-bond Market

(2) Domestic bond market in Hong Kong

6.3.2

Equity markets

Consultants will consider the possibility of introducing

private equity to the project and will advise on the

nature and timing of such an introduction.

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