16

3.3.4

(a)

Bank Guarantees for Long-term Loans

In GPC's opinion, 60% of the long term loans should be guaranteed by the Bank of China and the remaining 40% should be guaranteed by reputable international banks in Hong Kong and/or U.K. or by ECGD of U.K. However, CLP firmly believes that unless the Bank of China guarantees all foreign loans, it would not be possible to raise the 90% loans required by GNPC.

The Financial Situations of GNPC After Plant Commissioning

(a) Electricity Cost Coal-firing:-

Comparison Between Nuclear Power and

An economic assessment has been made for a coal-fired station of 3 x 660 MW capacity to be built by CLP in Hong Kong. The results indicated that the levelised cost of electricity (i.e. an average unit cost which is time-weighted with inflation taken into account over the period from 1988 to 2008) from the coal-fired station would be about 23% higher than that from a joint nuclear power station in Guangdong, as shown in the following table:

Unit Cost of Electricity (USZ/kWh)

Year

Joint Nuclear Power Station in

CLP Coal-fired Station in

Guangdong

Hong Kong

Difference

(2 x 900 MWe PWR)

(3 x 660 MW)

1988

15.4

13.6

1.8

1989

13.9

11.7

2.2

1990

11.7

11.2

- 0.5

1991

12.1

11.7

0.4

1992

11.8

12.7

0.9

1993

11.8

13.7

1.9

1994

11.9

14.8

2.9

1995

12.1

15.9

3.8

1996

12.6

17.4

4.8

1997

13.2

18.7

5.5

1998

14.3

20.1

5.8

1999

15.1

21.5

6.4

2000

16.0

23.1

7.1

2001

17.1

24.9

7.8

2002

18.2

26.9

8.7

2003

19.5

29.2

9.7

2004

21.0

31.8

10.8

2005

22.8

34.6

11.8

2006

24.7

37.8

13.1

2007

26.8

41.5

14.7

2008

· 27.0

44.6

17.6

Levelised

14.3

17.6

3.3

cost

100%

123%

238

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