12.
13.
14.
(c) To avoid the need for raising additional capital at a time
close to the expiry of the lease of the New Territories.
15.
Circumstances beyond our control have placed CLP in the forefront of political decisions destined to be of the greatest importance to the future of Hong Kong.
"
!
As Chairman of CLP, a well-run public Company, I feel we must be very careful not to exaggerate our own importance, and not to make any commitment unless we are absolutely sure we can carry
it out.
1
Undoubtedly we are in a very special and unique position as a point of contact but this emphasises our responsibility to recognise our limitations and to realise that we cannot act as principals but only as co-ordinators or project managers whose assistance and advice can be invaluable to all parties concerned.
I envisage CLP as
(a) The main purchaser of electricity from the nuclear power
(b)
station.
(b) Establishing a Hong Kong registered project management company outside CLP's normal operation and to act as a liaison with all parties concerned.
(c)
(d)
Note :
These duties extend far beyond the ordinary responsibilities of a project manager because of the political implications involved. Continuity is an essential element which we must provide. Such a role though onerous is, I think, within CLP's financial and organising ability.
Indirectly providing joint management and operation of the facility during the period loans are outstanding.
Establishing a training programme for our own and KEC's engineers.
The concept I have set out has the great advantage of being simple.
It is obviously in the interest of KEC to produce power as economically as possible.
It is equally obvious that CLP would wish to purchase power at a price below that at which they could generate it themselves from
(a) their own coal-fired power stations; and
(b)
a nuclear power station if built in Hong Kong.
16.
Indications are that there will be a substantial margin between the cost per unit generated at a nuclear power station and a unit of electricity generated at a coal-fired power station.
Assuming this difference was halved between KEC and CLP, both parties would benefit.