CONFIDENTIAL 機密
For discussion
on 29th November 1977
XCC(77)86
Copy No...4.. of 40
Page 1 HKK 16+ //
MEMORANDUM FOR EXECUTIVE COUNCIL
20X
(2442
SCHEME OF CONTROL FOR CHINA LIGHT
AND POWER COMPANY LIMITED (CLP)
(CERVO
A
B
On 19th April 1977, after considering memorandum
XCS(77)2, a copy of which is at Annex A, Honourable Members advised and the Governor ordered:
(a)
(b)
that the Government side should work to the brief summarised in paragraph 45 of the memorandum, and should also explore the possibility of the company issuing bonds or debentures to raise funds, in negotiations with CLP (includes PEPCO and the new generating company) on a new Scheme of Control;
and
that simultaneous negotiations should be opened with the Hongkong Electric Company Limited on a Scheme of Control (paragraph 50 of the memorandum).
The Governor further directed that consideration should be given to enfranchising the electric power companies in due course.
2
CLP and the Government side have now reached full agree- ment on the form and content of a proposed new Scheme of Control for CLP, a copy of which is attached at Annex B. At Annex I to Annex B is an agreed memorandum describing the procedures for reviewing financial plans and for tariff adjustments; and at Annex II is an agreed memorandum on the interpretation of the Scheme of Control and on the accounting policies to be adopted by CLP for Scheme of Control purposes. The precise wording of the Scheme of Control, including the two Annexes, has yet to be checked by the Legal Department.
3
In the following paragraphs, the main features of the proposed Scheme of Control at Annex B are compared with the negotiating brief at paragraph 45 of Annex A.
(a) New Generating Company (paragraphs 18-19 of Annex A)
4
Agreement, in accordance with the brief, on the establishment
of a new generating company to provide the substantial additional facilities
C.S. 166
CONFIDENTIAL
機密