RESTRICTED
174066
MDLIAN 2258
SCOPE FOR SUITABLE PARTNERS. HE REPEATED HIS ADMIRATION FOR THE ROLLING STOCK ON THE MTR HERE AND SAID HE WOULD BE FOOLISH NOT TO CONSIDER METRO-CAMMELL/GEC ALSTHOM AS A LEAD CONTENDER FOR BANGKOK. I HAVE SINCE SEEN RONAN, MANAGING DIRECTOR OF THAT COMPANY, WHO IS IN HONG KONG THIS WEEK, AND URGED HIM TO FOLLOW THIS UP. I BELIEVE HE DID NO MORE THAN MAKE ONE PHONE CALL TO STEWART ELLIOTT BEFORE DEPARTING. THIS WILL NOT BE ENOUGH FOR WHAT I BELIEVE TO BE ONE OF OUR BIGGEST TRADE PROSPECTS IN THE AREA.
(B) SHAJIAO C POWER STATION
4. THIS ALSO APPEARS TO BE ON THE MOVE. AN AGREEMENT HAS BEEN SIGNED WITH THE GUANGDONG AUTHORITIES. HOPEWELL HAVE BEGUN SELECTION OF SUPPLIERS OF 2 X 660 MGWTS COAL FIRED UNITS, AND A LETTER OF INTENT HAS BEEN SIGNED WITH GUANGDONG FOR ANOTHER 4 UNITS OF THE SAME SIZE. GEC ALSTHOM WERE IN CONTENTION FOR THE FIRST UNITS. THEIR VALUE WOULD BE APPROXIMATELY USD 1 BILLION. AGAIN GORDON WU IS VERY CONFIDENCE THAT THIS WILL GO AHEAD VERY SHORTLY.
5. GORDON WU AND ELLIOTT HAD SPENT 3 DAYS LAST WEEK SEARCHING OUT A FURTHER SITE FOR THE ADDITIONAL UNITS. THEY HAD THEN GONE ON TO PROPOSE TO THE CHINESE (FROM WHOM HE CLAIMED HE HAD RECEIVED VERY INTERESTED RECEPTION) THAT THEY SHOULD BUILD NOT FOUR BUT TWELVE UNITS OF 660 MGWTS ON THE ONE SITE, EACH UNIT TO BE A CARBON COPY OF THE ONE BEFORE, AND THE RESULT OF A SINGLE NEGOTIATION AND CONTRACT. HE DESCRIBED IT AS DOING FOR POWER STATIONS WHAT THE MODEL T FORD HAD DONE FOR CARS. HE HAS ALSO PRODUCED PLANS, WHICH HE SHOWED ME, OF HOW SUCH A DEVELOPMENT COULD BE FINANCED WITH A COST TO THE CONSUMER NO HIGHER THAN THE COST OF ELECTRICITY IN HONG KONG WHICH IS LOWER THAN THAT IN GUANGDONG. HE WOULD BE HAVING FURTHER MEETINGS IN GUANGDONG TO PURSUE THIS AFTER HIS VISIT TO THAILAND. I SUGGEST GEC ALSTHOM BE ENCOURAGED TO PRESS HARD FOR THE FIRST TWO UNITS AND THAT THEY BE INFORMED ABOUT THE PROPOSAL FOR THE MEGA POWER STATION.
(C) PHILIPPINES POWER STATION PROJECT
6. HOPEWELL ARE MOVING AHEAD ON A 2 X 350 MGWT COAL FIRED POWER STATION AT PATANTAS. GORDON WU SAID THE PROJECT HAS BEEN ENDORSED BY MRS AQUINO. THE VALUE WILL BE APPROXIMATELY USD 700 MILLION. INITIAL ENQUIRIES TO SUPPLIERS HAVE BEEN SENT OUT. THE PROJECT HAD THE BACKING OF THE IFC AND ADB SO FINANCING WAS ASSURED. GEC ALSTHOM HE THOUGHT WERE INTERESTED. NEITHER ON THIS NOR ON HIS OTHER POWER STATION PROJECTS HAD HE HAD ANY SERIOUS APPROACH FROM