18
(ii)
(iii)
Loan Repayment
After the commissioning of the nuclear power station, the estimated total loan will be US$3661m. This loan will be repaid mainly by
mainly by funds generated from depreciation and partly by retained profits. In the economic evaluation, depreciation is calculated at US$223m per annum and the total depreciation charge for the 15 year loan repayment period would be US$3345m. It means that only a total of US$316m
would be required for loan are repaid, the profits will be gradually
retained
repayment.
After
profits all
above-mentioned retained
loans
refunded to the shareholders using the depreciation fund.
Decapitalisation
After all loans are repaid, the depreciation fund will be used
models indicate Financial for decapitalisation. that by the end of the joint venture period in 2008, the shareholders of GNPC will get back their total share equity of US$796m
is the sum of shareholders
investment and accrued interest
shareholders' on during construction of the nuclear power station.
which
fund
(iv)
Profit Sharing
The profit is assumed to be 30% of the GNPC operating cost which comprises fuel cost, depreciation, O & M cost, taxation,
and decommissioning
allowance.
operating interest
The average rate of return on the shareholders' equity would be about 25.0%. In the case of HKNIC, after deducting the dividend withholding tax of 10%, the net rate of return would be 22.5%.
the
taking Company.
to
into
The
GNPC will distribute all
part or
of its profits shareholders in accordance with their shareholdings after making allowance for reserves and consideration the cash position of undistributed profits will be accumulated in the retained profit account. According to the financial analyses, the total amount of profits distributed by GNPC during the joint venture
would period
be
at US$7548m (US$993m present value). This will be shared by GPC and HKNIC in a 6 to 4 ratio.
3.3.5
Conclusions
After the extensive studies and analyses, it is considered that the joint development of a nuclear power station in Guangdong by GPC and The main findings are HKNIC is financially and economically viable. summarised as follows:-