2

Since February the project has gained momentum and, as Sir Lawrence Kadoorie reported to the Prime Minister, Secretary of State for Industry and Lord Privy Seal during his recent visit, has assumed a degree of political importance. From a position of neutrality, CLP/KEC would appear to have come out in favour of the supply of UK hardware wherever possible and for direct UK and Hong Kong Government participation in the project.

It now appears probable that the project will be for

a 2 x 900 MW FWR nuclear station to operate as base load plant

a 150 W pump storage scheme for peak load

associated transmission lines within Guangdong and to Hong Kong.

Total project costs are estimated in the region of US $4,000m as follows

Hardware

US $

2000

S

Erection

700

Civils

800

Transmission

500

4000

The UK cannot at present supply the total PWR nuclear island and a nuclear pattner will therefore be necessary.

Commercial Benefits

Even so the Hardware orders for UK industry could exceed US $1300m with further potential contacts for the provision of fuel services by BNFL. In commercial terms the project could therefore be the largest Sino-British venture at least since the Revolution with implications for the advancement of UK trade in China and generally in the area.

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