CONFIDENTIAL
機密
J
XCCI(80)23
(iv)
4
(d)
(e)
(f)
(g)
(h)
(i)
(j)
(k)
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that, if practicable, the proposal should be implemented, being referred back to Council if costs proved substantially higher than the estimates in paragraph 6 of the paper.
approval of the Finance Committee of the Legislative Council obtained for a Government guarantee for financing for the project on 9th July 1980;
an off-the shelf company (Owensbord Enterprises Ltd) purchased and set up to bring together interested Government departments, the power companies and the two main oil companies; the first Board meeting being held on 11th July 1980;
a project manager (Denholm Ship Management (Overseas) Ltd) chosen by tender and appointed on 18th August 1980;
a bank chosen after a tender exercise, and loan facilities totalling $232 million negotiated;
detailed costings and fuel specifications drawn up. The latter were particularly difficult since storage of such a large quantity of refined fuel oil for such a long time would be a world "first" (Japan and other countries store crude oil, gas oil or kerosene on board tankers, but no country has yet tried to store heavy fuel oil, so a number of new technical problems had to be solved);
investigations of such technical matters as possible mooring sites have been carried out;
detailed plans for pollution control measures have been drawn up and agreed; and
a purchase agreement between Owensbord Enterprises Ltd and the power companies has been drafted, on which agreement is likely in the near future.
As a result of a decision of the Board of Owensbord Enterprises Ltd., tenders were called on 23rd September for the supply of 200 000 metric tons of fuel oil and the charter of two vessels of 100 110 000 dwt, the intention being that the oil should be brought in the vessels to Hong Kong waters and kept at a mooring seven miles east of Basalt Island until such time as the oil could be discharged at the storage facilities at the new power stations. The calling for tenders unluckily coincided with the intensification of the Iran/Iraq boarder clashes. As a result, only one tender was received for the oil and this was unsatisfactory, being too small a quantity at too high a price and not up to specifications. Nine tenders were received for the ships but these are of course useless without the oil.
CONFIDENTIAL
機密