CONFIDENTIAL 4 B

A

2.

Major maintenance of the transmission

lincs eto on both sides of the border, will be

Minor maintenance up to the

carried out by CLP.

border at Lo Wu will be carried out by CLP,

and in Guangdong by KEIB. All maintenance costs

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will be met by CLP.

5.

A formal agreement is required to be

signed by 31 March; it will be for a period of

three years from the date of supply.

6.

The tariff charged by CLP to KEIB

will be CLP's normal bulk tariff, with

provision for increases in the second and

third years.

The total revenue expected over

the 3 year period is $185 million. CLP

has assured the Government that these sales

will not be subsidized by Hong Kong consumers.

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