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He said that the review had shown that it would be justifiable to ask the company to address this problem by deferring the last four 312 megawatt units due to be installed at Black Point Power Station for 5 years. (The units are currently due to be installed in 1998, 1999, 2000 and 2001.). The Executive Council had agreed last week that the company should be urged to submit such a proposal to the Government within three months (by early February 1997). He said that the company had been informed.

Mr Ip said that there had been much public interest in the possibility of the two power companies co-operating over power supply, particularly as to whether China Light and Power's excess capacity could supply consumers on Hong Kong Island.

He said that this option was not so straightforward. The consultants had advised that an additional transmission line (interconnector) between the two companies, costing about $470 million, would be required, but it would only be needed for 3 years. This option was therefore less economical than others and hence not in the best interests of consumers. Furthermore, it would use only one of the four CLP units requiring deferral.

He added that the Government would nonetheless continue to study the feasibility of power transfer between China Light and Power and Hongkong Electric for possible application in the future.

End

Major reduction in ACP budget

The Government today (Monday) announced that the Airport Core Programme (ACP) budget has been reduced by $1,805 million principally as a result of significant savings on three of the seven government core projects.

The Director of the New Airport Projects Co-ordination Office (NAPCO), Mr Billy Lam, said that as a result of rigorous control over costs and a small reduction in scope of the ACP, the Government had achieved considerable savings from the Lantau Link, Route 3 and the West Kowloon Reclamation projects.

The savings were identified following a comprehensive review of the ACP by the Government.