TNAG-1518-FCO40-2079-Hong-Kong-International-Airport-1986 — Page 44

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(d) to the extent that actual surplus generated in any one

year is greater or less than 16.5% of ANFA the

difference should be credited or debited to a "Surplus

Equalisation Account". The likely brought forward

balance on the account should then be taken into

consideration each year in setting future charge

levels;

(e)

dividends be appropriated to the community each year

limited only by cash available in the Airport Accounts

but after retaining sufficient cash to match any credit

balance on the "Surplus Equalisation Account";

(F)

in pursuing the general aim mentioned at (c) above

general charge levels should be adjusted frequently by

small amounts, rather than infrequently by large

amounts;

(g)

in first applying the dividend policy recommended at

(e) above the accumulated cash brought forward from

earlier years should be considered available for

distribution as community dividend in view of the

conclusion reached at para. 4.2.4 above;

(h)

the rate of return be subject to review in the event

that the relatively static land figure plays a less

dominant role in the ANFA base;

(i)

in the medium term charges are increased by no more

than the rate of projected cost inflation for Airport

services with a view to gradually achieving an average

annual return of 16.5% on ANFA (The projected cost

inflation is presently of the order of 6%).