3. ''THE DEPARTMENT OF INDUSTRY IN THE UNITED KINGDOM, IN AN INNO- VATIVE MOVE, HAS OFFERED US A PACKAGE DEAL WHICH INCLUDES THE SUPPLY OF THE REQUIRED GENERATION EQUIPMENT FROM A CONSORTIUM OF INDIVIDUAL COMPANIES AS WELL AS ADVISORY SERVICES TO BE PROVIDED BY THE CENTRAL ELECTRICITY GENERATING BOARD (CEGB). THE DEPARTMENT OF INDUSTRY MAS TAKEN STEPS TO ENSURE THAT THE PROPOSALS ARE TECHNICALLY SOUND AND THAT THE PRICES QUOTED ARE INTERNATIONALLY COMPETITIVE.

4. ''PREPARATION OF TECHNICAL SPECIFICATIONS AND TENDER DOCUMENTS, EVALUATION OF RESPONSES, SITE EVALUATION AND SELECTION, INVEST- IGATION OF THE SELECTED SITE AND PREPARATION OF A SITE REPORT, AND OPTIMIZATION OF PROJECT DESIGN ARE ALL REQUIREMENTS WHICH ARE TIME CONSUMING AND CONSEQUENTLY VERY EXPENSIVE.

5. *THE EXTENT OF THESE SERVICES ARE ESTIMATED TO COVER SOME 2094,000 MAN-HOURS OF WORK.

6. ''IN ADDITION WE ARE DEPARTING FROM OUR POST-WAR PRACTICE OF UTILISING PURELY OIL-FIRED PLANT. THE NEW PLANT WILL BE DUAL-FIRED, CAPABLE OF BURNING COAL OR OIL, SO THAT THE HONG KONG COMMUNITY MAY BENEFIT BY ANY SUSTAINED PRICE DIFFERENTIAL, AND WILL ALSO OBTAIN GREATER SECURITY FROM CONTINUITY OF SUPPLY. SINCE WE WILL NOW BE INVOLVED IN FAR MORE COMPLICATED SYSTEMS THAN BEFORE WE HAVE TO ARRANGE FOR TRAINING OF PERSONNEL BOTH DURING THE PLANNING AND WHEN THE PLANS ARE BEING IMPLEMENTED.

7. ''FOR THIS PROJECT CLP AND ESSO, AFTER CAREFUL INTERNAL AND EXTERNAL REVIEW OF PROPOSALS SUBMITTED AT OUR REQUEST BY THE DEPARTMENT OF INDUSTRY OF THE UNITED KINGDOM, CONCLUDED THAT OUR REQUIREMENTS, INCLUDING PRICE COMPETITIVENESS, COULD BE MET. ACCORDINGLY, WE HAVE DECIDED TO CONCLUDE A CONTRACT WITH UK SUPPLIERS FOR THE PROVISION OF THIS NEW POWER STATION.

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8. ''THE DEPARTMENT OF INDUSTRY'S PROPOSALS THE FIRST OCCASION ON WHICH THE DEPARTMENT HAS TAKEN SUCH ACTION STATED THAT IT HAD TAKEN THE LEAD BY NOMINATING INDIVIDUAL COMPANIES AS SUPPLIERS AND THAT IT HAD TAKEN STEPS TO ENSURE THAT THE DETAILED PROPOSALS WERE TECHNICALLY SOUND.

9.''THE DEPARTMENT OF INDUSTRY HAD NOMINATED THE GENERAL ELECTRIC COMPANY LIMITED OF ENGLAND AS THE MAIN CONTRACTOR AND TURBINE MANUFACTURER, WITH BABCOCK AND WILCOX AS THE SUPPLIER OF THE DUAL-FIRED BUILERS AND L G MOUCHEL AND PARTNERS AS THE CONSULTANTS FOR CIVIL ENGINEERING DESIGN OF THE POWER STATION.

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