Statement of Receipts and Payments of the Consolidated Fund and ...

(e) Accelerated Infrastructure Program
The Accelerated Infrastructure Program (AIP) was developed to provide the Government
with leased accommodation through operating leases.
The Treasurer has provided an indemnity to the bondholders for any money payable to
bondholders in the event of a default by the leasing company. Property Leasing Limited (PLL).
The major contingent liabilities that have arisen are in respect of bond issues and work
done to date on further projects where bonds have yet to be issued. Should the indemnity be
called with respect to payments to bondholders, the Trustee may enforce a charge over the assets
of the leasing company, which should substantially reduce the total amount payable by the
Government.
To 30 June 1992, funds have been raised by PLL for five projects (four police stations and
a police station/law courts complex). The sum of the principal amounts raised under the two
bond issues to fund these projects was approximately $104 million at June 1992.
A further bond issue of $168.5 million was made in September 1992 to fulfil obligations
under previously executed Agreements to Lease for ten projects.
(f) Melbourne Cricket Ground
To enable the Melbourne Cricket Club (the "Club") to replace the Southern Stand, the
Government has assisted the Club in arranging financing for the construction of a new stand,
known as the Great Southern Stand. The Stand is expected to provide Victorians with enhanced
spectator facilities for the next fifty years.
The cost of the construction of the Stand is to be paid for by the Club out of its revenues.
In the early years, the Club's revenues will not be sufficient to meet all interest payments and the
financing arrangements contemplate the Club capitalising interest in the early years of the Stand's
life.
The Government has executed two guarantees, guaranteeing the repayment of the
borrowings undertaken by the Club to finance the construction of the Stand, and has provided the
Club and the Melbourne Cricket Ground Trust with certain indenmities.
The first guarantee secures a long term conventional loan facility which is capped at $160
million. This loan facility was progressively drawn down to meet construction payments.
Construction was completed in March 1992 for a total cost (including capitalised interest) of
$144.5 million. Subsequent to the completion of the Stand, the Club issued amortising inflation
indexed bonds (the "Bonds"). The proceeds of the Bonds were used to repay part of the principal
under the conventional loan facility.
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