TNAG-2413-FCO40-3515-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-fina-1992 — Page 47

(a)

(b)

(c)

13

introduction of a

Passenger Terminal Charge

of $50 (in March 1991 prices) to be levied on each passenger using the airport:

deferral of dividends to the shareholder (the as lenders are time until such Government)

can be made satisfied that such payments without placing at risk the ability of the AA to service its debt obligations; and

deferral by Government of the requirement for air traffic the AA to make payment for

services (see and meteorological

the deferred

control paragraph

above) 13

with

charges to be repaid in full, with interest, this can be done without placing at risk debt service obligations.

as

soon as

Low Case

22.

to order In

in the "base developed less favourable financial purpose of this

the financial

robustness

of the plan

test the

case" Wardley have also modelled a The "low case". scenario or "low case" is to demonstrate the impact on plan for the airport of a number of adverse Those modelled were :

the overall project cost, as

in increase against original budget;

eventualities.

(a)

an

(b)

a delay in the completion of the project;

(c) lower than

revenues expected

from the

disposal of real estate prior to the opening of the airport; and

23.

(a)

lower than expected traffic growth.

In

order

the the

to

adequate support to provide adequate

adverse circumstances, in these

following measures

project cashflows financial analysis suggests that the

would be necessary

a)

provision of additional the day 1991 prices;

of

additional equity by Governrent equity of $8.5 billion at money prices, or $5.9 billion at March