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BRIEFING FOR
LPS
46
MTC Ĉ LOKADOORIE
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Fm.
BRIEFING FOR
LPS.
ESSENTIAL FACTS
مسلك
CASTLE PEAK POWER STATIONS
1.
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CONFIDENTIAL
FILE
ный
16611
GEC and Babcock Power Ltd gained the main contract for the
supply of equipment for the 'A' Station (now about to go on stream).
They have also been awarded the contract for the 'B' Station. This
was agreed earlier this year. Together with the electricity
transmission network (contract awarded to Balfour Beatty), the
deals are worth about £1,000 million at current prices. The DOI
were involved closely in putting together the industrial and
financial packages for both contracts and led the negotiations.
GUANGDONG NUCLEAR PROJECT
LORD KADOORIE north of Hong Kong in China's Guangdong province.
on calcol81
HKK 166/1
2. China Light and Power (CLP) have produced with the Guangdong
Electric Company a feasibility study for a nuclear power station
The study
recommends the construction of a 2 x 900 MW pressurized Water
Reactor; the sale of 50% of the electricity to CLP in Hong Kong;
and preference for UK and Chinese sources of supply where competitive.
GEC hope to secure the turbine contract, but would need to combine
with a nuclear island supplier, in practice either Framatome (France)
or Westinghouse (USA). The commercial benefit to the UK could be
anywhere between £370 million and $600 million.
3.
There is as yet no indication from Peking that a decision
on the project is imminent, nor do we know which nuclear island
supplier might be favoured. One major uncertainty is the position
of the French. The Chinese offered President Giscard a commitment
that France should build the first nuclear power station in China.
In February 1981, Ministers therefore endorsed the view that the
best hope of UK involvement lay in collaboration with the French
/but
CONFIDENTIAL