CONFIDENTIAL
HKB 182/3
CONFIDENTIAL
FM BTC HONG KONG TO PRIORITY DTI
TELNO OTTER 248
OF 23091OZ DECEMBER 91
AND TO PRIORITY FCO
7
INFO PRIORITY ECGD, PEKING, TOKYO, MANILA, BANGKOK
Fill
788
134557 MDLIAN 3681
FOR HALL, HEAD OF PEP
MY TELNO OTTER 247:
INT
GORDON WU'S PROJECTS
(A) SHAJIAO C POWER STATION
1. THE FINAL VALUE OF THE CONTRACT TO GEC ALSTHOM, AS AGREED IN THE LAST ROUND OF DISCUSSIONS, IS POUNDS STR 280 MILLION.
2.
ALTHOUGH AGREEMENT IS STILL REQUIRED ON FINANCING, AND FINAL PROVINCIAL AND NATIONAL PRC APPROVAL STILL HAS TO BE GIVEN, AND THE CONTRACT WITH GEC ALSTHOM IS NOT LIKELY TO BE SIGNED FOR A FURTHER THREE OR FOUR MONTHS, THE CONTRACT IS REGARDED AS SUFFICIENTLY FIRM BY ALL PARTIES THAT GEC ALSTHOM WILL NOW START ORDERING MATERIALS AND WILL BEGIN WORK BASING THEMSELVES ON THE LETTER OF INTENT.
(B)
3.
PAGBILAO POWER STATION, PHILIPPINES
GEC ALSTHOM'S CHANCES FOR TAKING THIS PROJECT ARE MUCH APPROVED BY HAVING WON THE SHAJIAO PROJECT. THE VICTORY ON SHAJIAO C REPRESENTS HOPEWELL'S FIRST SIGNIFICANT ORDER FOR BRITISH EQUIPMENT AND THEIR FIRST FROM GEC ALSTHOM. DISCUSSIONS ON THE FINAL SHAJIAO C CONTRACT WILL GIVE THEM DAY TO DAY CONTACT
WITH HOPEWELL WHICH CAN BE TURNED TO GOOD ADVANTAGE IN PURSUIT OF PAGBILAO POWER STATION. THAT PROJECT IS LIKELY TO BREAK AS
RAPIDLY AS DID SHAJIAO C WITH TALKS STARTING EARLY IN THE NEW YEAR. (I AM NOT SURE HOWEVER WHETHER ADB AND IFC SUPPORT FOR THE PROJECT WILL REQUIRE INTERNATIONAL TENDERING: GORDON WU TALKS AS IF ANOTHER NEGOTIATED CONTRACT WILL BE POSSIBLE). GEC ALSTHOM ARE PLANNING TO SEND A TEAM (SUBSTANTIALLY THE SAME TEAM) TO PURSUE PAGBILAO EARLY IN JANUARY. THIS IS ABSOLUTELY THE RIGHT TACTIC. THEY NEED TO BACK THE WORKING LEVEL CONTACTS WITH TOP LEVEL SUPPORT.