TNAG-2408-FCO40-3502-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-Brit-1992 — Page 71

Mithre Interest

43113

Lepe Measur

for thramen

Mkturer 33

aprovel in

25 March 1992

Mr R Watts

HM Treasury

Parliament Street

London

SW1P 3AG

Deci Roger Роде

-y

Hed

HKA 182/3

Any comment, please

?

Arte ECED

All

END 30/2

AIRPORT

120 14

PO Box 2200

2 Exchange Tower Harbour Exchange Square London E14 9GS

Fax 071-512 7649 Telex 290350 ECGD HQ G Telephone 071-512 7000

Direct 071-512 7620

ID

MARKET:

HONG KONG

SUPPLIER: TRAFALGAR HOUSE CONSTRUCTION (MAJOR PROJECTS)

PROJECT:

BUYER: VALUE:

1

LTD

DESIGN AND CONSTRUCTION OF KAP SHUI BRIDGE AND

VIADUCT

HIGHWAYS DEPARTMENT GOVERNMENT OF HONG KONG UK RESPONSIBILITY £140M (UK £95M LOCALS £45M)

We have received formal application to indicate support and cover for buyer credit and "consecutive" and "parallel" cover in respect of the above business. A bid for the contract will be submitted by The Anglo-Japanese Construction Joint Venture which has pre qualified to bid. The application relates to that part of the overall contract which will constitute the UK responsibility through Costain's and other Trafalgar House companies. The contract price of the UK responsibility will be £140m broken down as to UK Goods £80m, UK Services £15m and Local Goods/Services £45m.

2

The contract is for the design and construction of Kap Shui

Shui Mun cable stayed bridge and Ma Wan viaducts linking Tsing Yi and Lantau Islands. This contract represents a major element of the Lantau Fixed Crossing linking the site of the new airport to urban Hong Kong. There is strong competition for this contract from Japanese, French, Korean and two Hong Kong led joint ventures who have also pre qualified.

3 The invitation to bid includes a request for finance offers and we have been requested to provide our usual without commitment indication of premium rates, terms, interest rates etc. An indication in US$ and Sterling has been requested to include in each case the equivalent of £50m in HK$ financing which is within our delegated authority for this currency. We would be prepared to consider support for a loan in respect of 85% the UK element of £95m repayable over a maximum of 8 years from completion. Consensus Interest Rates no longer apply to this market and any financing would be at CIRR rates or

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