27 June 2000
KCRC signs US$42 million export credit loan facility
 
The Kowloon-Canton Railway Corporation (KCRC) today signed a US$42 million export credit loan facility provided by Export Development Corporation (EDC) of Canada.
This loan facility will help finance about 85% of the purchase of a train control and signalling system for West Rail, Phase I, from Alcatel Canada Inc.
Speaking at the signing ceremony, KCRC Chairman and Chief Executive Mr K Y Yeung said: "This loan facility, with a 12-year maturity inclusive of the drawdown period, represents the first direct buyer financing offered by the Export Development Corporation to Hong Kong."
It demonstrated EDC's capability in offering competitive terms which would help reduce the Corporation's overall financing costs, he noted.
He said the state-of-the art train control and signalling system from Alcatel Canada Inc. would ensure efficient and safe operation of West Rail when it opened in 2003.
In March 1999, KCRC awarded the contract for the design, manufacture, installation, testing and commissioning of a train control and signalling system for West Rail, Phase I, to Alcatel Canada Inc. at a cost of HK$383,026,609 in money-of-the-day terms.
Installation of the train control and signalling system is scheduled to start in mid-2001 for completion in mid-2003. Trial run will commence in the second half of 2003.
Founded in 1944, EDC is Canada's official export credit agency and operates as a commercial financial institution by facilitating trade and investment between Canadian exporters and their foreign partners.
 
KCRC Chairman and Chief Executive Mr K Y Yeung concludes the signing of the US$42 million export credit loan facility with Mr Allan Roberts, Ground Transportation and Shipping Director of the Export Development Corporation.