TNAG-2254-FCO40-3238-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-gene-1991 — Page 112

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Thus, Eurotunnel was granted a 55 year Concession Concession to invest in and to earn profits from Fixed Links across the Channel, regulated by a bi-national Intergovernmental

Commission.

Next the words Fixed Links. Although this first Link is a rail tunnel, Eurotunnel has the right to build, own and operate bridges and/or tunnels, for rail and/or road transport, between the two countries. To underpin the capital being invested, Eurotunnel has the monopoly right to operate such links until 2020. After that, for 22 years, until the 55 year concession expires in 2042, others may open and operate competing bridges and tunnels - if they dare - but Eurotunnel is protected from Government-subsidised competition. Those rights are enshrined in a Treaty between two countries, which makes it very difficult to reduce those rights!

Next, the words "Build, Own and Operate". Based on the Concession, enhanced by the Monopoly rights until 2020, Eurotunnel has gone to international capital markets to raise the capital to design and construct the first Tunnel and

Transportation System, and can do so again for any later links next century. Eurotunnel is the owner, or client, for turnkey construction by the consortium of 10 British and French construction companies who were the original sponsors. Once it is built, by 1993, Eurotunnel as owner will operate the Channel

Tunnel until 2042 - or any later date if an extension to the Concession is granted by the two Governments. We are building a tunnel to last at least 150 years!

It may surprise you, ladies and gentlemen, but I believe that a happy conjunction was achieved in the structure - a simple and good idea was implemented, and that simple idea created a massive project. Not everything large has to have a complicated origin. Let me explain.

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