MONDAY, NOVINEER 10, 1986
THE REPORT INDICATES THAT ON THE BASIS OF THE ARRANGEMENTS, AS ANALYSED BY LAZARDS, THE GOVERNMENT CONCLUDED, ON JANUARY 3. 1985, THAT IT WAS REASONABLE TO EXPECT THAT OVER THE LIFE OF THE PROJECT PURCHASING POWER FROM THE NUCLEAR POWER STATION AT DAYA BAY WOULD BE IN THE INTEREST OF CONSUMERS.
THE REPORT CONTINUES +ALTHOUGH THE FOSSIL FUEL PRICES HAVE FALLEN SINCE THE PROJECT WAS APPROVED, OTHER IMPORTANT CHANGES HAVE ALSO TAKEN PLACE. PROBABLY THE MOST IMPORTANT, BEARING IN. MIND THE ENORMOUS BORROWINGS THAT ARE INVOLVED, IS THE LOW INTEREST RATES CURRENTLY PREVAILING. THE PRESENT EXPORT CREDIT IN INTEREST RATE FOR CHINA IS 7.4 PER CENT PER ANNUM WHICH IS SIGNIFICANTLY LOWER THAN THE ORIGINAL PLANNING FIGURE OF 10 PER CENT PËR. ANNUM. THIS INTEREST RATE WILL BE FIXED FOR 21 YEARS
+THE GOVERNMENT THEREFORE REMAINS CONFIDENT THAT THE DAYA BAY POWER STATION CONTINUED TO REPRESENT AN ATTRACTIVE SOURCE OF ELECTRICITY TO MEET HONG KONG'S FUTURE REQUIREMENTS, THE REPORT SAID.
THE REPORT ALSO NOTES THE ACCURACY OF CLP'S FORECASTING IN PREDICTING FUTURE DEMANDS. DETAILED FORECASTS MADE IN 1977 FOR 1985 AND 1986 WERE ONLY 2.2 PER CENT AND 5.6 PER CENT RESPECTIVELY BELOW ACTUAL SALES. IN THE NEXT EIGHT YEARS, CLP EXPECTS MAXIMUM DEMAND TO GROW BETWEEN SEVEN AND NINE PER CÈNT PER ANNUM.
OTHER ASPECTS RELATING TO TARIFFS IN THE REPORT INCLUDE AN INTRODUCTION TO THE SUPPLY OF ELECTRICITY TO HONG KONG, CLP'S LINKS WITH THE GUANGDONG POWER COMPANY, THE FINDINGS OF THE FEASIBILITY STUDY, ELECTRICITY DEMANDS, ALTERNATIVE METHODS IN MEETING FUTURE DEMANDS, THE STRUCTURE OF THE DAYA DAY PROJECT, ARRANGEMENTS FOR THE SALE OF NUCLEAR ELECTRICITY, THE WAY IN WHICH TARIFFS ARE DETERMINED UNDER THE SCHEME OF CONTROL, AND THE TARIFF IMPACT OF THE DAYA BAY PROJECT.
IN THE FINAL +TARIFF+ CHAPTER UNDER +EVIDENCE FROM OTHER RECENT SOURCES+, THE REPORT REFERS TO A SELECT COMMITTEE OF THE HOUSE OF LORDS WHICH CONCLUDED THAT NUCLEAR POWER WAS, IN ALMOST ALL CIRCUMSTANCES, THE CHEAPEST MEANS BY WHICH ELECTRICAL UTILITIES IN EUROPE WOULD BE ABLE TO GENERATE POWER IN THE FUTURE.
THE
PART TWO OF THE REPORT DEALS WITH SAFETY ASPECTS RELATING TO THE STATION. ITS INTRODUCTORY CHAPTER STRESSES THAT ALTHOUGH THE CHINESE GOVERNMENT HAS ABSOLUTE RESPONSIBILITY FOR THE PLANT'S SAFETY, THE HONG KONG GOVERNMENT HAS ALWAYS BEEN CONCERNED THAT THE HIGHEST SAFETY STANDARDS SHOULD BE ADOPTED DURING THE CONSTRUCTION AND SUBSEQUENT OPERATION OF THE POWER STATION. EVIDENCE AVAILABLE DEMONSTRATES THAT INSOFAR AS SAFETY IS CONCERNED, ALL THE FUNDA-TAL REQUIREMENTS THAT ARE ** IMPORTANCE (FOR EXAMPLE, SOUND DESIGN CONCEPT, A WELL ENGINEERED AND PROVEN DESIGN, HIGH QUALITY CONSTRUCTION AND HIGH STANDARDS OF OPERATION IN ACCORDANCE WITH CAREFULLY PREPARED OPERATING RULES) ARE BEING ADDRESSED MOST CAREFULLY BY THOSE CONCERNED.
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