KRC/CLP EXECUTIVE COMMITTEE
CORREROTAL IN COMMERCE
Paper by Dr W Marshall
16 May 1980
At the meeting of the Executive Committee on 25 March 1980 it was agreed we should do everything possible to speed up this feasibility study. But the Sub-Committees and the Management Committee have a great deal of work to do. Therefore, if we do everything in strict sequence, our discussions will take a very long time. For this reason, Sir Lawrence Kadoorie has asked
me to write a paper for the Executive Committec which outlines the key issues which are likely to arise in the discussions over the next few months. The purpose of this paper is not to seek decisions from the Executive Committee because, at this moment in time, that would be inappropriate. llowever, if we can anticipate problems now, then it could help us to make decisions later
on.
I must stress at the beginning that this paper is written from my general knowledge of nuclear power as applied to this particular situation. There may be special features applying which I have not yet properly understood.
The selection of a site is important but it is so dependent upon local factors that there is nothing useful to say at this point.
The system study will probably show that it is not easy to intro- duce a big reactor on the Guangdong/Hong Kong electricity grids but, given the expanding demand in the Province as a whole, I think this problem also will be solved. This system study should indicate the size of reactor which is most appropriate and will influence the work of the Equipment Sub-Committee by affecting the balance of advantage between three or four loop reactors and single or dua! turbine operation.
Finance is always difficult and therefore the other questions listed in the remainder of this paper must be solved first. There are a number of key issues concerning equipment, contractors and regulations which will arise for the first time in the Sub-Committee on Equipment but will need to be decided either by the Management Committee or the Executive Committee. In my opinion, the key issues will be the following
Contracting Methods
There are four methods by which we could obtain a reactor. They
are
1)
turn key contract
2)
engineering directly by KEC/CLP
3)
architec: engineer contract
4)
comprehensive contract
The first method, by turn key contract, is very rapid but there is some evidence that it is an expensive way of proceeding and it has the disadvantage that the customer does not learn anything from the construction process so that when the reactor is completed it is like a "black box" which produces electricity.
1.