AIRPORT AUTHORITY FINANCIAL PACKAGE
(Paper handed over to the Chinese on 3 April and to the ACC on 30 May 1992)
Main features
*
*
*
*
*
*
*
Points to make
The airport will have cost $46.3 BN (1991) to
build when it opens, (AA to fund $33.7 BN; private sector investors $9.5 BN;
Government facilities).
$3.1
BN
for Government
It is estimated that the РАА/АА will borrow about $37 BN (MOD).
The Government will provide total equity to
the PAA/AA of $19.5 BN (1991) [$25.1 BN MOD]. The initial equity injection will be $13.6 BN (1991) [$16.6 BN (MOD)].
The Government will undertake to pay the balance as callable equity of up to $5.9 BN (1991) [$8.5 BN (MOD)] to meet specified adverse risks (increase in project cost, reduced property development profit before opening and project delay.)
The PAA will be able to charge a passenger terminal charge of $50 (1991) per passenger, which could go up to $100 (1991) in the event of adverse conditions.
If
Chek Lap Kok Airport is completed late, surpluses from the continued operation of Kai Tak will then be used by the AA to meet its debt obligations. The SARG would not receive these profits anyway, if CLK opened as planned.
The Government will not seek dividend payments from the AA, and will defer payment for air traffic control & meteorological services during the initial period of debt repayment (to be repaid as a lump sum with interest).
Unlike the MTRC, the AA will have no significant operating revenues until completion of the airport. Government must commit to much more up-front support than is necessary for the MTRC.
Airport Finance : p.1 of 2
Page 45Page 46
*
-*
No comments yet.
Private notes are available after approval.