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Title:

ECONOMIC AND FINANCIAL ASPECTS OF THE TUNNEL

Accession Number:

00493088

Record Type:

Component

Availability:

South African Institute of Civil Engineers

9 St Davids Place, Parktown, P.O. Box 62129
Marshalltown South Africa

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Order URL: http://worldcat.org/issn/00097845

Abstract:

This brief article described the method used to finance the Du Toitskloof (Huguenot) tunnel. As the loan that the project could support was less than the full cost, the extra money required was obtained by toll revenues and fuel tax. The loan supportable by revenue (lsr) of each toll project determines the size of the capital market loan portion of the capital cost. The lsr was found by discounting to present worth (at a suitable interest rate) the net toll revenue in each future year in the study period, calculated from traffic increasing at the expected rate (computed from traffic demand projections) and allowing for an increase in tariffs due to inflation each year. The financial strategy for the tunnel included, firstly, the construction period phase, which involved the procurement of capital market loans equal to the lsr. Six loans to the value of R54.5 million were taken out over different terms and at different interest rates to assist in the construction cost. The remainder of the construction cost and the payment of the interest on the capital loans during this period were funded from the national road fund. The second phase, during the initial operational years of the tunnel project, involved the payment of interest on the loans from the net toll revenue and from the fuel levy income. The final phase included the payment of interest on the loans and the establishment of redemption funds from net toll revenue only, from which both the capital market loans and the national road fund contributions will be repaid. (TRRL)

Corporate Authors:

South African Institute of Civil Engineers

9 St Davids Place, Parktown, P.O. Box 62129
Marshalltown South Africa

Authors:

Petzer, E
Jamieson, R

Pagination:

p. 169-170

Publication Date:

1988-4

Serial:

CIVIL ENGINEER IN SOUTH AFRICA

Volume: 30
Issue Number: 4
Publisher: South African Institution of Civil Engineers
ISSN: 0009-7845

Features:

References (1)

Geographic Terms:

Subject Areas:

Bridges and other structures; Construction; Economics; Energy; Finance; Highways; Society

Source Agency:

Transport Research Laboratory

Crowthorne House, Nine Mile Ride
Wokingham, Berkshire RG40 3GA United Kingdom

Source Data:

IRRD 819788

Files:

ITRD, TRIS, ATRI

Created Date:

May 31 1990 12:00AM

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