16
WEDNESDAY, NOVEMBER 27, 1991
GOVT'S WATCHDOG ROLE OVER CLP WILL BE STRONGER WITH NEW SCA
A NUMBER OF CHANGES TO THE TERMS OF THE NEW SCHEME OF CONTROL AGREEMENT (SCA) HAVE BEEN AGREED TO STRENGTHEN THE GOVERNMENT'S ABILITY TO MONITOR THE PERFORMANCE OF THE CHINA LIGHT & POWER COMPANY LIMITED (CLP), EXXON AND THEIR ASSOCIATED GENERATED COMPANIES (THE COMPANIES).
THIS WAS STATED BY THE SECRETARY FOR ECONOMIC SERVICES, MRS ANSON CHAN, IN HER WRITTEN REPLY TO A QUESTION BY THE HON LI WAH-MING AT THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).
REGARDING THE NEGOTIATION WITH THE COMPANIES ON THE SCA RENEWAL, THE GOVERNMENT IS SATISFIED WITH THE TERMS OF THE NEW SCA WHICH PROVIDED FOR AN APPROPRIATE BALANCE BETWEEN THE INTERESTS OF CONSUMERS AND SHAREHOLDERS.
MRS CHAN NOTED THAT THERE WAS SOME URGENCY IN COMPLETING THE NEGOTIATIONS BECAUSE THE COMPANIES WOULD SHORTLY NEED TO BEGIN RAISING FINANCE FOR THE CONSTRUCTION OF THE PROPOSED NEW POWER STATION AT BLACK POINT, THE FIRST UNITS OF WHICH WOULD BE NEEDED SOMETIME BETWEEN 1996 AND 1998.
"SOME POTENTIAL INVESTORS HAVE MADE CLEAR THAT THEY CONSIDER AGREEMENT ON THE TERMS OF THE NEW SCA TO BE A PREREQUISITE TO MAJOR LOAN FINANCE FOR THE PROJECT," SHE SAID.
SHE SAID NEGOTIATIONS WERE CONCLUDED IN SEPTEMBER FOLLOWING WHICH THE REVISED TERMS OF THE NEW SCA WERE APPROVED IN PRINCIPLE THE EXECUTIVE COUNCIL IN OCTOBER.
BY
"ARRANGEMENTS WERE MADE FOR A FULL BRIEFING OF OMELCO MEMBERS AS SOON AS POSSIBLE AFTER THE ESTABLISHMENT OF THE ECONOMIC SERVICES AND PUBLIC UTILITIES PANEL. THIS BRIEFING TOOK PLACE ON 11 NOVEMBER, THE SECRETARY SAID.
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MRS CHAN POINTED OUT THAT CLP DID NOT HAVE A FRANCHISE OR ANY EXCLUSIVE RIGHTS FROM THE GOVERNMENT TO SUPPLY ELECTRICITY.
THE PRESENT SCA BETWEEN THE GOVERNMENT AND THE COMPANIES, WHICH EXPIRED ON SEPTEMBER 30, 1993,
IS A VOLUNTARY
MUTUALLY AGREED TERMS.
"WITHOUT THIS VOLUNTARY
AGREEMENT ON
AGREEMENT GOVERNMENT WOULD HAVE NO RIGHT TO EXAMINE THE EXPANSION PLANS OF THE COMPANIES OR TO APPROVE THEIR TARIFFS, MRS CHAN SAID.
"
SHE SAID THE NEGOTIATIONS WHICH STARTED IN JANUARY THIS YEAR LEADING UP TO THE AGREEMENT IN PRINCIPLE WITH THE COMPANIES ON THE EXTENSION OF THE SCA FOR A FURTHER 15 YEARS FROM 1993 WERE CONDUCTED IN CONFIDENCE AND NO SPECIFIC CONSULTATION WAS HELD WITH GROUPS OR INDIVIDUALS.
/"HOWEVER,"
SHE