Title: THE ARLBERG TUNNEL AG AS A MODEL FOR FINANCING COMPANIES
Abstract:THE PREMATURE EXTENSION OF IMPORTANT HIGHWAY CONNECTIONS HAS MADE NECESSARY A FORM OF FUNDING USING THE LONG TERM CAPITAL MARKET. IN THE MODEL CASE OF THE ARLBERG TUNNEL AG THE FUNCTIONS OF CLIENT AND...THE PREMATURE EXTENSION OF IMPORTANT HIGHWAY CONNECTIONS HAS MADE NECESSARY A FORM OF FUNDING USING THE LONG TERM CAPITAL MARKET. IN THE MODEL CASE OF THE ARLBERG TUNNEL AG THE FUNCTIONS OF CLIENT AND FINANCING COMPANY ARE BOTH REPRESENTED. A SPECIALISED COMPANY OF THIS TYPE MUST BE ABLE TO DEPEND UPON AN ADEQUATE INCOME FOR ITS PURPOSE. IN THIS CASE IT IS IN THE FORM OF A TOLL WHICH HAS BEEN FIXED BY THE FEDERAL MINISTRY OF CONSTRUCTION AND TECHNOLOGY. THE COLLECTION OF THE TOLL IS THE RESPONSIBILITY OF THE COMPANY, WHICH THEN MANAGES THE LAND ASSEMBLY, CONSTRUCTION, OPERATION, MAINTENANCE, FINANCING AND ADMINISTRATION. SHOULD THE TOLL INCOME BE INSUFFICIENT, THE FEDERAL AUTHORITY ACCEPTS THE LIABILITY. IN THIS CONNECTION IT IS NOTED THAT WHEN THIS TYPE OF FUNDING ARRANGEMENT IS APPLIED TO ONE PHASE OF THE EXTENSION, THERE MUST NECESSARILY FOLLOW A PHASE IN WHICH NOT ONLY IS FURTHER CONSTRUCTION POSTPONED BUT ALLOWANCE MUST BE MADE IN THE DISTRIBUTION OF ANNUAL BUDGET FUNDS FOR FEDERAL ROAD CONSTRUCTION FOR THE REPAYMENT OF THE OVER-EXPENDITURE OF THE PREVIOUS YEARS.Read More
Publication Year: 1978
Publication Date: 1978-11-01
Language: en
Type: article
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