TNAG-2411-FCO40-3506-Proposed-airport-in-Macao-(Macau)-1992 — Page 15

21

August 1992

Roger Watts Esq

HM Treasury Parliament Street

London

SW1P 3AG

нка 18214

mi

ме

4

26/3

ECCD

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 7308

13

Dear Roger

MACAU AIRPORT

12

ри

Thank you for your letter of 20 August.

2 Our offers of support will include the requirement for an acceptable external bank guarantee of payment in respect of post 1999 maturities and state that in this context the Bank of China is acceptable.

-

had

our

3 You mentioned your concern about the viability of the

adding

of that we

assured

you project, satisfaction that the Government of Macau, in the event of a catastrophe, could meet guarantees of £200m-£300m. I should perhaps clarify this. The part of the project in which the UK may be involved ie equipment supply and installation is in the region of $200m-$300m and of course, not all UK element. The total project value is The economic of course much higher - perhaps up to $1bn. forecasts which

that assume prepared

major Macau infrastructural projects, including the airport, to borrow $1.3bn over the will have

next few years.

if even These forecasts also

the airport suggest that project does not prove to be self financing over the

repayment period

we

for

external Macau's

manageable as

the debt

debt should remain service ratio

to is projected

remain below 10%.

ра

26

Yours sincerely

Norman Lambet

N A Lambert

CC EGC members and John Gallagher (DTI) and

Terry Furness (FCO)

NL32.M8

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