Quote:
Originally Posted by suburbia
Very material costs there. I think this is also what happens when people add seemingly small elements, $50M here, $100M there, ridiculous station here, unnecessary underground there - and it all adds up, and all the additions can only be handled by loans.
Huge jeopardy without Olympics.
|
totally not true. just choices.
Money in a sinking fund before project delivery: helps shave some.
Fixed payments over 30 years works out to:
Quote:
Principal is $4,600,000,000.00
Term is 30 Years
Interest rate of 3.422 %
Payments are $246,475,032.84 a year.
Interest total is $2,794,250,985.20
|
But the feds are paying at a faster rate, as is the province. So really, it depends what those contribution agreements say. If the feds cover financing charges over and above the construction finance to reconcile accruals (actual spending) with cash flow, that knocks out a bunch of financing costs. The feds covering that is normal. The province it all depends on the design of the contribution agreement, so also a lower rate.
Covering only a city portion of $1,533,000,000.00 will be $931,214,512.80 in interest with a fixed payment of $82,140,483.76