CONTRACTS FOR GENERATING PLANTS OF SIMILAR SIZE AND TYPE FROM INTERNATIONAL MANUFACTURERS.

3. COSTING OF TECHNICAL ADJUSTMENTS NEEDED TO COMPLY WITH THE

SUPPLY AND SERVICES OFFERED.

4. DETERMINATION OF LIKELY COSTS OF A POWER PLANT OF SIMILAR SIZE, USING THE SPOT PRICES COLLECTED AND SYNTHESIZING METHODS FOR

COST CORRELATION.

5. PRICING OF THE VALUE OF ALL ENGINEERING SERVICES OFFERED.

ICING

6. COMPUTATION OF THE QUOTE FAIR UNQUOTE MARKET PRICE FOR THE

POWER STATION, TAKING INTO ACCOUNT THE RESULTS OF ITEMS 3,4

AND 5.

7. A REVIEW OF THE COMMERCIAL TERMS OF THE OFFER, TO ASSESS THE

PRICE ADJUSTMENTS THAT MAY BE APPROPRIATE.

8. PREPARATION OF A LETTER AND REPORT GIVING THE RESULTS OF THE

FINANCIAL REVIEW.

THIS WORK WHICH INVOLVED ABOUT 11 MAN-MONTHS OF ENGINEERING TIME AND 2-3 MAN-MONTHS OF SUPPORTING SERVICES ENSURED THAT THE COMPANY RECEIVED A COMPLETELY NEUTRAL FINANCIAL EVALUATION.

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 20TH IN THE UK AND IN HONG KONG WITH LAZARDS BROTHERS LTD, REPRESENTING THE DEPARTMENT OF INDUSTRY OF THE UK GOVERNMENT, AND SCHRODER WAGG, LONDON, AND SCHRODERS AND CHARTERED, HONG KONG, REPRESENTING CLP/PEPCO.

ENDS.

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