THE CITIC and Wharf-led consortium is prepared to inject a total of $2.4 billion into the Western Harbour Crossing as part of the development fund. Shareholders in the project will have to bear the capital injection on a pro-rata basis, according to an announcement issued last night. Under the financial proposal to the Government, the project will cost about $7.5 billion. The balance of estimated costs is expected to be provided for through bank loans. The consortium announced the final arrangement and shareholders' structure following the approval of the harbour tunnel project by the Legislative Council. The CITIC group will be the largest shareholder, with CITIC Hongkong and CITIC Pacific holding 25 per cent and 10 per cent, respectively. Cross-Harbour Tunnel Co and China Merchants Holdings will hold 37 per cent and 13 per cent, respectively. Kerry Group will hold the other 15 per cent. Under the plan, CITIC Hongkong and CITIC Pacific will have to pay a total of $840 million as working capital. The consortium also announced that a guarantee attached to the Western Harbour Crossing franchise would be entered into in August. Under the guarantee, the job will have to be completed within 48 months of the start of construction. The consortium has in place consecutive turn-key construction contracts with Nishimatsu Construction and Kumagai Gumi, according to the announcement. Meanwhile, CITIC Pacific said its long-term objective was to develop a large and diversified business with emphasis on infrastructure which would provide stable and growing earnings.
