TNAG-0636-FCO40-784-Supplies-of-electricity-for-Hong-Kong-1977 — Page 109

CODE 13 - 77

Reference.

4

i

ii

Balfour Beatty would be prepared to offer themselves as main contractors for the first stage of the ten year power programme for Hong Kong (that is, the power station, coal handling facilities and transmission line) and to offer in principle a facility to carry out the second stage, including the pump storage scheme and desalination plant;

BB

If their position as main contractor was accepted, would expect that China Light and Power would nominate a particular company to carry out the civil engineering work in Hong Kong. If this were the case BB Civil Engineering would be interested in a joint venture for this aspect of the contract;

iii BB would wish to have considerable support from the CEGB

as sub-consultant (we suggested that BB should make direct contact with Mr Bonner, CEGB);

iv BB made it clear that their acceptance

V

of main contractor responsibility would be dependent upon the most favourable ECGD terms which were available. In particular, they would wish to have a facility similar in principle to that offered in respect of the Al Jubail order;

If civil engineering works in Hong Kong were to form part of the package, BB would not be attracted by the Lazards proposal that the British contracting companies should invest directly in the purchasing company in Hong Kong.

Further action

i

ii

It was agreed, in the course of our two meetings, that it would be desirable for you to hold a meeting on Thursday afternoon at which Balfour Beatty; GEC; Babcock & Wilcox; Lazards (if available); and ECGD should be present. In the light of this discussion it should be possible to decide whether specific proposals can be put to the Prime Minister and, consequently, to Sir Lawrence Kadoorie.

Before the meeting Balfour Beatty would have direct discussion with GEC about their own attitude towards the project and would discuss financing arrangements with Lazards.

A J MACDONALD

IC2

Room 610 V/S

215-5015

31 May 1977

cc: Mr Bullock

Mr Baker

Mr Clark MEPT Miss Mueller Mr Havelock MEPT Mr Roberts CRE Mr Bryant OPG Mr Kemp ECGD Mr Batters by IP Mr Lane Treasury Mr Morphet Energy Mr Stewart FCO Mr Mingay G