Notice Type
Departmental
Notice Title

Statement of Indemnity Given Under the Public Finance Act 1989

Pursuant to section 65ZD(3) of the Public Finance Act 1989, the Minister of Finance makes the following statement:
"On 10th of August 2010 I, The Honourable Simon William English, Minister of Finance, on behalf of the Crown, gave an indemnity to the New Zealand Railways Corporation (trading as KiwiRail Group) ("KiwiRail") for any reasonable direct expenses incurred by
KiwiRail in relation to the proposed procurement of
new Electric Multiple Units for the Auckland region
(the "EMU procurement"), such expenses to include
any negative foreign exchange hedging settlements entered into to preserve the "purchasing power" of
the NZD500 million loan for the EMU procurement, related project management costs and legal and technical consultancy expenses."
The indemnity will apply only in the event that the EMU procurement does not proceed for any reason.
The indemnity is limited to a maximum liability of NZD100 million.
Dated at Wellington this 10th day of August 2010.
HON SIMON WILLIAM ENGLISH, Minister of Finance.