PTZABQ(3)

Background

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1.

In August 1987 construction of a nuclear power station began at Daya Bay, 50 km north east of Hong Kong. The plant is a joint venture between the Nuclear Investment Companies of Guangdong (which is wholly owned by the Chinese Ministry of Nuclear Industry) and the Hong Kong Nuclear Investment Company (which is wholly owned by the China Light and Power Company of Hong Kong), with shares of 75% and 25% respectively. The total cost of the project is US$3,680 million, of which US$400 million is being provided by the Joint Venture Company. The balance of the cost will be raised in loans. Some 70% of the power generated will go to Hong Kong. The main contractor to supply the plant is French: GEC will supply the turbines and generator. The plant will become fully operational in 1993.

2.

Since Chernobyl great concern has been expressed in Hong Kong about the risks to the territory in the event of an accident at Daya Bay. The discovery of a construction fault last September heightened these fears. Following a full report from the Joint Venture Company, the Hong Kong Government expressed satisfaction that the error would be fully rectified and improved supervision procedures put into place.

3. of the major contracts for construction of the power station, the Framatome contract for the nuclear steam supply system is worth about £700 million; the GEC/Turbine Generation contract for the conventional turbines and generators is worth about £250 million, and their share of the civil works

contracts associated with the conventional island would be about £8 million (this latter information is confidential).

4.

The United Kingdom Atomic Energy Authority were engaged in 1986 by the Hong Kong Government to provide expert guidance on

contingency planning for action in Hong Kong in the event of an accident at Daya Bay. The Hong Kong Government have concluded that the report provides a sound basis for their contingency plans. They

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