gearing?, page-10

Faking,

Thanks for that link to the original prospectus. the interesting parts of the prospectus appear to be on pages 64 to . Points of interest:

- Debt at start of operations $1,434M (P65);
- Hedged interest rate approx 6.9% (p65);
- Debt to be refinanced 2014, 2018, 2023 and 2028 (p65);
- Debt levels peak at $2,550M in 2023 (p65);

- Operating and administration costs $30.7M pa (p66);
- Management costs $12.59M pa (p68);

Based on the above I estimate operating and finance costs as follows:

Operating Expenditure $43.3M pa
Interest Expense 6.9% x $1,434M = $99M pa

The majority of the vehicle are cars (86%) which are expected to be charged a toll of $4.28 in 2010. One car each day represents $1,562 revenue. Therefore, to cover predicted operating expenditure of $43.3M pa the tunnel will need to average 27,720 cars per day.

Obviously, with debt predicted to rise with refinancing up until 2023, the tunnel is not expected to cover both operating expenditure and financing costs. However, for interest sake, if the trust was to also cover interest expenditure of $99M pa the tunnel would require an additional 63,380 cars per day or an average total of 91,100 crossings per day.

Everyone feel free to make comments on the above.

Regards

SP