CUNFIDENTIALS.7.1980
W.F. STONES'S UNDERSTANDING OF KEC'S VIEWS ON THE
DEVELOPMENT, MANAGEMENT, AND FINANCE OF JOINT CLP/KEC NUCLEAR POWER STATION, ASSUMING THE
PARTICIPATION TO BE KEC 60%, U.K. & LOCAL INTEREST 40%
to you
It must be clearly understood that in submitting the paper there can be no commitment either real or implied that the views expressed will be accepted by CL&P or other parties named.
1. Nuclear Power Station Company (NPS)
2.
(a) NPS is to be
registered in China for the development, management and owning of the nuclear power station to be constructed in Guangdong.
NPS will be jointly owned by:-
(b)
(i)
(c)
(d)
(e)
(ii)
F
KEC/PRC 60% of total equity; and
HK Nuclear Investment Company (HKNIC) 40% of total equity.
:-
HKNIC will be a company registered in Hong Kong and jointly owned by U.K. and local interests.
NPS will have a Board of Directors. KEC and HKNIC will fill the Board in proportion to their equity ratios.
Contract between KEC, and HKNIC for the investment in NPS will cover a period of 25 years.
(f) NPS will own two 900 MWe PWR machines initially.
Finance of NPS
(a) NPS is to be financed by shareholder's investment (equity) and loans. In principle, shareholder's investment should be kept as little as possible.
(b)
It is anticipated that the following financing arrangement is practical:-
KEC/PRC investment
HKNIC
6% of total
HKNIC investment
4% of total
Domestic RMB loans
20% of total
Foreign Bank loans
70% of total
KEC/PRC investment and domestic RMB loans will be for the purpose of paying for the domestic costs of the project, e.g. land, civil works etc.