manufacture it. NEI in association with ABB Gas Turbines could bid the contract as could GEC Alsthom with the French arm of the company supplying the gas turbines. The likely UK content would be £600-700M, and the tender would be expected to go out to international competitive bidding.
18 As regards ECGD cover, ECGD's experience with CLP has been very good but the sheer size of the commitment involved here, plus the existing exposure (in the region of £2.25 bln), and that the principal repayments will all become payable after 1997 all serve to create difficulties. In addition ECGD's security
has been on the basis of "project financing" rather than Government guarantees.
19 The Chinese authorities have indicated that a power station at Black Point would not attract the same problems as the Hong Kong Airport project. Guangdong Province needs power very badly and is currently importing power from CLP (peak load 600-700MW in the summer). Despite its own power station building programme it still sees a need for increased take off of power from Hong Kong in the years ahead. Black Point would assist in this requirement.
HONG KONG PATROL BOATS (recently lost)
20 Vosper Thorneycroft (UK) Ltd and FBM Marine Ltd were in the running for the Royal Hong Kong Marine Police requirement for 6 Patrol Boats. Competition was fierce and included companies from Australia, Thailand and Hong Kong. The Hong Kong Marine Dept have decided to award the contract to ASI, an Australian company. The single most significant factor was the price. It is believed that the contract will be worth £22m. The British content of the Australian bid will probably be about £4m which will be for electronic and communications equipment, Racal Decca and GEC being the obvious companies. We await official confirmation of the award and for more information on the UK submissions.
ECGD
21 Short term cover, on terms of up to 180 days, is available without restriction. Medium/long term cover is available subject to a Market Exposure Control and the 1991/2 Business Budget allocated on a first come first served basis. During the PMS deliberations Ministers agreed that cover should continue to be available for Hong Kong and that it should continue to be regarded as a separate risk from PRC.
22 ECGD has had enquiries from UK contractors in consortia pursuing various parts of the PADS project. Whilst there has no recent contact with ECGD this is expected to change now that agreement has been reached on the airport and related questions. Given the potentially very large exposure for ECGD there could be implications for the 1991/92 Business Budget. In view of the nature and importance of the project to the future confidence and prosperity of Hong Kong it may, in due, course, have to be looked at exceptionally.