(c)
(a)
2
HKNIC investment and foreign bank loans will be for the purpose of paying for the foriegn equipment and services.
Domestic RMB loans will be provided by Bank of China and/or other Chinese Banks.
Foreign Bank loans will be provided by international and Hong Kong Banks, to be guaranteed by Bank of China and the ECGD.
All loans are also to be covered by an electricity purchasing agreement signed between KEC, CLP and NPS for 25
years.
Loans are to be repaid in a minimum period of 15 years.
Interest rate for domestic loans should that for foreign loans.
Profit, Taxation of NPS
3.
(a)
(b)
Profit margin of NPS should shareholders' equity in order Hong Kong.
be
identical to
be no less than 258 on
to be comparable to that in
It is understood that taxation in China will be as follows:-
5%
35%
108
158
revenue tax
profit tax
dividend with-holding tax
import tax
In the opinion of CLP, these rates are far too high.
(c) CLP propose that the taxation rates should be such that the resultant cost of electricity of the NPS plant will not be higher than that of a similar nuclear plant in Hong Kong and, of course, should be substantially less than the lowest cost of production of coal-fired units in Hong Kong. Based on this principle and accepting the fact that Hong Kong's tax is calculated at 178 on profit, the following taxation rates for NPS are suggested:~
08
20%
:
10%
0%
revenue tax
profit tax
dividend with-holding tax
import tax
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Management of NPS