OBTAINED AN INDEPENDENT REPORT FROM ELECTROWATT ENGINEERING SERVICES OF ZURICH, A SWISS COMPANY OF INTERNATIONAL REPUTE. THE REPORT OF THESE CONSULTANTS INVOLVED ABOUT 11 MAN-MONTHS OF ENGINEERING TIME AND 2-3 MAN-MONTHS OF SUPPORTING SERVICES, AND PROVIDED AN UNBIASED TECHNICAL, COMMERCIAL AND FINANCIAL EVALUATION THAT COULD BE TAKEN INTO ACCOUNT PRIOR TO ANY DECISION BEING MADE. THEIR CONCLUSION WAS THAT THE BRITISH OFFER WAS ATTRACTIVE SUBJECT TO CLARIFICATION OF TWO POINTS RELATING TO COST ESCALATION AND ANY DELAY IN DELIVERY, BOTH OF WHICH HAVE
SINCE BEEN SATISFACTORILY RESOLVED.
17. THE FINANCING OF A PROJECT OF THIS SIZE IS INEVITABLY OF CRITICAL IMPORTANCE. PREPARATION OF THE PRE-INVESTMENT STUDY AND ARRANGEMENTS FOR PROJECT FINANCING INVOLVED DISCUSSIONS IN THE UK AND IN HONG KONG WITH LAZARD BROTHERS AND CO. LTD., REPRESENTING THE DEPARTMENT OF INDUSTRY OF THE UK GOVERNMENT, AND J. HENRY SCHRODER WAGG AND CO. LTD., LONDON, AND SCHRODERS AND CHARTERED LIMITED, HONG KONG, REPRESENTING CHINA LIGHT AND POWER COMPANY, LIMITED AND ESSO.
∙18. ''SPECIAL FINANCING ARRANGEMENTS WHICH SHOULD BE HIGHLY BENEFICIAL TO THE COMPANIES AND, AT THE SAME TIME, TO THE HONG KONG COMMUNITY WERE EVENTUALLY ARRANGED WHEREBY WE RECEIVED A FINANCIAL OFFER OF CREDIT EQUAL TO 100 PERCENT OF THE VALUE OF THE UK GOODS AND SERVICES, FOR WHICH A FLEXIBLE REPAYMENT PATTERN
IS ENVISAGED.
19. IT IS OUR FIRM POLICY THAT NEITHER CLP NOR ESSO WILL ENTER INTO A PROJECT UNLESS THEY ARE CERTAIN THAT IN ALL NORMAL CIRCUM- STANCES IT CAN BE BROUGHT TO A CSUCCESSFUL CONCLUSION, AND THAT THE FINANCIAL OBLIGATIONS INVOLVED CAN BE MET.
20. THE CAPITAL INVESTMENT PROGRAMME FOR THE NINETEEN-EIGHTIES IS BEING PLANNED IN TWO PHASES. THE FIRST PHASE CONSISTS OF THE TWO 350 MW UNITS, A NUMBER OF GAS TURBINES, THE GENERAL INFRASTRUCTURE OF THE WHOLE STATION AND THE ASSOCIATED TRANS- MISSION AND DISTRIBUTION NETWORK. THE ESTIMATED COST OF THIS FIRST PHASE, TO BE INCURRED BETWEEN 1978 AND 1982, IS DOLLARS 4,700 MILLION. THE SECOND PHASE INVOLVES TWO MORE 350 MW UNITS AND THE TRANSMISSION AND DISTRIBUTION NETWORK ASSOCIATED WITH THEM, ESTIMATED AT DOLLARS3,720 MILLION FOR THE PERIOD 1983-1987.
•
81. ''A NEW COMPANY, KOWLOON ELECTRICITY SUPPLY CO. LT (KESCO), IS BEING FORMED BY CHINA LIGHT AND POWER COMPANY, LIMITED AND ESSO, TO OWN THE GENERATING FACILITIES NOW TO BE PROVIDED.
#