HK$425m Lifeline for Tradelink Project

by K. K. Chadha in Hong Kong

Hong Kong’s troubled Tradelink computer project has received a HK$425 million (US$54.5 million) lifeline from the government. As a result, up to 100,000 trading companies will be forced to use electronic technology in business communications with the government.

The government has put in the extra funding as convertible bonds, after a loan plan was rejected b the main political parties in the Legislative Council because of the high risk involved in the project, started eight years ago. This means the government’s 40% stake in the Tradelink Electronic Document Services Co. would increase sharply if the company defaulted on the loan. Tradelink currently owes $162 million.

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