[en] Financing strategies applied to Phase I and Phase II were quite different. In Phase I, the project was more sophisticated and involved investments in different types of assets: Site acquisition; site formation and foundations; gas-making plants and associated equipment; naptha tanks; naptha pipeline; twin submarine gas pipeline connected to the existing distribution network; and workshop and offices. For Phase II, the tenderers demanded payment in foreign currencies because of their international procurement and their concern over Hong Kong currency at the time of submitting the tender. The Phase II financing package consists of: (1) ECGD facilities with a fixed interest rate at 9.15% p.a.--8 years with repayment in 10 semiannual installments over the last 5 years. (2) Fixed rate bank borrowings at 9% p.a. with repayment at the end of 5 years (use of swaps to obtain long-term money at lower interest rate). (3) Foreign currency deposits to cover exposure in two other currencies. (4) Forward contract to cover repayment installments in Sterling in the last 5 years at much lower rates of exchange. In a nutshell, by using a combination of different financing instruments, HKCG was able to eliminate foreign exchange and interest rate risks and reduce the overall capital cost of the plant