$6
(ii)
A new company, tentatively
Investment Company
(iii)
(iv)
(v)
(vi)
(vii)
(viii)
(ix)
registered in Hong
establishment of the
shareholders other controlled by CLP.
called Hong Kong Nuclear (HKNIC), shall be established and Kong to collaborate with GPC in the
above-mentioned GNPC. HKNIC will have
than CLP but will be managed and
It is recommended that Pressurised Water Reactors (PWR) be used for the nuclear power station in Guangdong and that the station capacity should be approximately 2 x 900 MWe. The two units are planned to be in commercial operation by 1988 and 1989 respectively.
After approval by the respective Governments and the establishment of GNPC, purchase of equipment through tendering or price negotiation should proceed as soon as possible.
In the selection of equipment suppliers, preference should be given to Chinese and U.K. manufacturers if their offers on conventional equipment, machinery, material and engineering services are technically sound and are competitive in price and financial conditions.
Preliminary site investigation and feasibility study indicate that both Tun Yang and Dong Shan sites are considered suitable for construction of a nuclear power station. CLP favours Dong Shan as it is more remote and screened from Shenzhen and Hong Kong by a range of mountains.
The equity of GNPC shall be contributed by GPC (60%) and HKNIC (40%). GPC and HKNIC shall share profits and losses according to their equity ratio.
Costs of the associated transmission system connecting the nuclear power station and the GPC and CLP networks have not been included in the cost estimates of the nuclear power station. It is recommended that such transmission system capital investment should be separately financed and shared by GPC and CLP in accordance with the recommendation in the system design summary report.
The capital investment of GNPC will be financed by share equity (10%) and long term loans (90%).
Electricity generated by GNPC will be sold to GPC and CLP in the ratio of 60% and 40% respectively. For electricity payments to GNPC, CLP will pay in Hong Kong currency and GPC will use RMB supplemented by foreign exchange. The amount of foreign exchange to be used by GPC would depend on foreign currency balance in the GNPC account. то ensure GPC will have sufficient foreign exchange to meet the GNPC foreign currency balance requirement, it has been agreed that GPC will resell one-third to one-half of its electricity share to CLP at a price equivalent to the GNPC price plus a fixed percentage to be determined before signing of the contract. In order for CLP to purchase and for GPC to sell this electricity, the price would have to be financially attractive to both Companies.