Taiwan High-Speed Rail Corporation Secures Financing
01 February 2000
Taiwan High-Speed Rail Corporation has reached an agreement with a banking consortium for $10.53 billion in syndicated loans to build the island's $15 billion bullet train project.
"The banking consortium and the transport ministry finally have settled details on the loans," said a corporation spokesman.
The corporation signed a memorandum in August with the government and banks on the financing plan.
The banking consortium is led by Chiao Tung Bank, Bank of Taiwan and the International Commercial Bank of China.
Taiwan High-Speed in late December named Japan's Shinkansen consortium as its priority choice over the bullet train project, but the decision had infuriated Eurotrain, which sought an injunction to freeze further negotiations.
Eurotrain said that a 1997 contract, which gave the Franco-German-Anglo consortium priority negotiating rights for the project, obliged Taiwan High-Speed to award the deal to the European group if its price was found to be reasonable.
The Shinkansen group is led by Mitsui and links Mitsubishi, Marubeni, Sumitomo, Mitsubishi Heavy Industries, Toshiba and Kawasaki Heavy Industries.
Taiwan High-Speed initially proposed to put the 345 km railway into operation in 2003, but has moved the date back to October 31, 2005.
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