P BTC HONG KONG
H.K.
HKK 164 1
YGD.
216
GRS 320
30 SEP 977
Jas
INDEX
CYPHER/CAT A
L
STRY Antion Taken
FM D T 1 29093OZ
CONFIDENTIAL
TO PRIORITY BTC HONG KONG TELNO CREDA 273 OF 29 SEPTEMBER.
POWER STATION PROJECT.
1. WE HOPE TO SEND OUR PROPOSALS ON FRIDAY.
f
(208)
2. AS FOR TECHNICAL AND PRICING SCHEDULES (YOUR CREDA 173),
THE COMPANIES RECEIVED THESE ONLY THREE DAYS AGO. COMPLETION
OF THE TECHNICAL SCHEDULES WILL TAKE SOME TIME, AND THEY
CANNOT BE READY FOR STONES NEXT WEEK. HOWEVER GEC WILL SEEK
TO COMPLETE TECHNICAL SCHEDULES SUBSTANTIALLY BY TIME OF VISIT
IN MID-OCTOBER.
3. PRICING SCHEDULES PRESENT QUITE SEPARATE PROBLEM TO HMG
AND TO COMPANIES. WE ARE PUTTING FORWARD TO CLP/PEPCO A PACKAGE
WHICH STANDS OR FALLS AS AN ENTITY. WHILE WE ARE PREPARED TO
INDICATE IN GREAT DETAIL THE SCOPE OF THE WORK WE ARE OFFERING, THE WAY THE OVERALL PRICE HAS BEEN MADE UP IS A MATTER FOR US. THIS IS SO FOR TWO REASONS. FIRST, ONCE WE START BREAKING DOWN
THE PRICE ITEM BY ITEM WE LAY OURSELVES OPEN TO COST COMPARISONS WHICH MAY NOT BE HELPFUL TO OUR CAUSE. SECONDLY, INSOFAR AS SPECIAL ARRANGEMENTS MAY HAVE BEEN MADE FOR THIS CONTRACT THEY
CANNOT BE ALLOCATED PRO-RATA TO EACH ITEM.
4. I RECOGNISE PARA 3 ABOVE WILL REQUIRE CAREFUL PRESENTATION, BOTH NOW AND IN LATER TALKS. HOWEVER, BOTH GORDON AND STONES HAVE SAID ALL THEY WANTED TO KNOW WAS THE COST PER KILOWATT OF INSTALLED CAPACITY OF THE UK PROPOSALS AND THAT HOW IT WAS MADE UP WAS OF NO CONCERN TO THEM. OUR APPROACH IS ENTIRELY CONSISTENT WITH THIS.
5. REGARDING FLUIDISED BED COMBUSTION, CEGB ADVISE US THAT THE UK PROPOSALS DO NOT INCLUDE PROVISION FOR FLUIDISED BED COMBUSTION. CEGB CONSIDER THAT THE PRESENT STATUS AND RATE OF DEVELOPMENT OF THE FLUIDISED BED SYSTEM IS SUCH TO MAKE LARGE SCALE APPLICATION IMPOSSIBLE WITHIN TIME SCALE REQUIRED FOR CLP/PEPCO. THE LARGEST UNIT POSTULATED IN UK IS OF ORDER OF 30MW AS AGAINST THE REQUIRED 350MW FOR PROJECT 77. THERE IS NO COMMERCIAL OPERATING EXPERIENCE OF FLUIDISED BED SYSTEMS AT PRESENT. CEGB AND MANUFACTURERS ARE INVESTIGATING COMMERCIAL POSSIBILITIES BUT AT PRESENT THE PULVERISED FUEL SYSTEM INCLUDED IN UK PROPOSALS IS THE ONLY ONE TO ACHIEVE THE RATINGS REQUIRED FOR CLP/PEPCO.
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