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that for CAPCO, are Peninsula Electric Power Co Ltd (PEPCO) and Kowloon
Electricity Supply Co Ltd (KESCO).
UK CONTRACTORS
6.
The main companies involved are GEC Turbine Generators (turbines),
Babcock Power Ltd (boilers), L G Mouchel & Partners (civil design); British
Electricity International (advisory services) and Balfour Beatty (trans-
mission line). CEC are the main contractor.
HMG INVOLVEMENT
7. In 1977 the Chairman of CLP, Sir Lawrence Kadoorie, approached
Mr Callaghan, the then Prime Minister, with the proposition that his company,
with Exxon as a partner, should enter into a negotiated contract with the UK
for the supply of a major power station. The advantages of this method of
contracting were that it was possible to arrange a complete package of hard-
ware and finance approved and presented by HMG; progress was made more quickly
than calling, for international tenders; and CLP were given special access to
CEGB resources. The Department of Industry took the leading role in co-
ordinating the successful presentation of a unique package of proposals from
UK manufacturers, the electricity supply industry and financial institutions.
8. Following the successful negotiations on the 'A' station, Lord Kadoorie
again approached HMG concerning the Castle Peak 'B' contract and a similar
successful package was subsequently presented. The Department of Industry
have been responsible for monitoring on both of these projects and have
established close contacts with both CLP and the UK contractors.
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