Bangkok--August 27--Hopewell Following the presentation on August 25, 1997 to the Ministry of Transport and Communication (MOTC) of the changes necessary to implement funding, Hopewell has stressed its intention to finish the Bangkok Elevated Road and Train System (BERTS). The requested changes, which were discussed with the lending banks and given to the government, are in accordance with the principles of the concession agreement and set out the criteria essential to progress the BERTS Project. Colin Weir, Director of Hopewell (Thailand) Ltd. said, "The continuation of this project can only benefit Bangkok and Thailand." Hopewell believes that if agreement can be reached, the project wil provide additional foreign investment of US$2,000 million into Thailand, necessary for the economy at this time, and at no cost to the government. The group of international banks financing the project include Kreditanstalt fur Wiederaufbau, Bayerische Landesbank, and Westdeutsche Landesbank Group from German, Dai Ichi Kangyo of Japan, and West Merchant Bank of Britain. Fuji Bank of Japan continues to support the project and currently serves as one of the financial advisors. To date, the BERTS project has been wholly financed by Hopewell. Hopewell is the only overseas investor in Bangkok to commit such a large amount of money-around US$575 million so far-to one project. The company has seen no return on its investment in the seven years it has been working on the project. As a privately funded project, Hopewell will be compensating the State Railway of Thailand (SRT) for the concession. Furthermore, as a project that has and will continue to provide income and benefits to the SRT, the government should not want to terminate it. Hopewell Holdings the parent company of Hopewell (Thailand) Ltd. bases in Hong Kong, recently gained recognition from Standard and Poors for its improved financial position. Hopewell has a tripled B minus investment grade corporate credit rating with the outlook revised from negative to stable. "Over the last eighteen months, Hopewell has made positive changes in both its business and financial profile," said Standard and Poors in affirming the rating. "The October 1996 partial sale of Consolidated Electric Power Asia Limited (CEPA), followed in July 1997 by the sale of the remaining 19.99 percent, has positioned Hopewell to better balance its future capital expenditures." The sale of its remaining stake in CEPA to Southern Group and the USA was in exchange for US$150 million and ownership of the Indonesian coal power station under construction by CEPA-Tanjung Jati B (TJB). Hopewell now takes control of the construction, operation, and maintenance of the TJB power plant. It was a move that allowed Hopewell to sell its monority interest in CEPA for the controling interest in TJB- to bring the project to completion and participation in the growth of the Indonesian power sector. The current impasse in the BERTS project lies in the decline of the economic climate in Thailand, further exacerbated by the devaluation of the Baht, and the reluctance of the Bankers to proceed with funding until resolution of the issues is received from the Thai government. In additon, the downturn of the real estate market, growth in the economy, and low-fare of the community train has reduced both patronage and projected, future revenues. As a result,the international banks, who are still committed to the project and last week submitted letters to Hopewell and the MOTC to confirm their support, are now reassesing structure of the project financing. Recent negative reports on this and other infrastructure projects in the Thai press are endangering further opportunites for foreign investment in Thailand. After reading conflicting press coverage, oversea investor are reluctant to invest in a company where goverment officials appear to be unsupportive towards the project. The press has highlighted the problems rather than the benefits of a desperately needed, new system of transport, and as a result, has portrayed Thailand as an unfriendly investment environment which does not help the bankers confidence. Hopewell, listed on the Stock Exchange of Hong Kong, is a holding company with subsidairies active primaily in transportation infrastructure project, power development and hotel and property investment development and managment. The company was one of the first foreign companies to invest in infrasturcture project in Thailand and is one of the leading infrastructure development companies in Asia. The Bangkok Elevated Road and Train System (BERTS) is necessary to provide the people of Bangkok with a low-cost, cost effective transit system, upgrade the State Railway's transport system, and provide additional roads and ease the chronic traffic congestion in Bangkok at no cost to the government, while also providing much needed foreign investment. END.