17:
4
It will only be necessary for KEC to provide sufficient incentive to CLP to purchase power by selling electricity to CLP cheaper than our Company can generate it ourselves.
No calculation of, or sharing of profit margins is involved.
No tax element need enter into the CLP side of the transaction.
No arguments need arise over discriminatory tariffs.
All that KEC will have to do is to ensure that sufficient profit is earned to service the loans hopefully obtained at relatively
low interest rates.
18.
19.
I envisage the Project Manager Company receiving its remuneration from those parties for whom it would be working, such remunera- tion to be calculated on a "cost plus incentive fee" basis.
Of course we must be assured that CLP would be guaranteed continuity of supply, this particularly as electricity from a nuclear power station is taken as a base load.
20.
To be safe CLP should not contract for more than could be generated by its largest set.
Note:
=
I would like figures prepared on the basis of this memorandum, also management's comments on if and how the suggestions contained therein could be implemented.
18.6.80.
LK/am
Lawrence Kadoorie