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The revised Contract Sum has been arrived at after negotiations on an arm's length basis, taking into consideration the experience of MCC, the complexity and the increased scope of the Works and the terms of the Supplemented General Construction Contract. The revised Contract Sum shall be payable in accordance with the progress of the Works settled on a monthly basis.
The revised Contract Sum takes into account the changes to the scope of the Works and the construction requirement of both the Sino-Iron Project and the Balmoral Project. It forms part of the aggregate estimated capital expenditure of the Sino-Iron Project and the Balmoral Project (being US$1,370 million and US$1,100 million respectively), which has been disclosed in the Company's circular dated 8 May 2006, and has been approved by shareholders of the Company as mentioned above