TNAG-0766-FCO40-970-Supplies-of-electrical-power-for-Hong-Kong-Castle-Peak-power-1978 — Page 109

K

Ntheupson

Bazlı Rımı

DEPARTMENT OF INDUSTRY

1 VICTORIA STREET

LONDON SWIH OET

TELEPHONE DIRECT LINE

01-215 5015

SWITCHBOARD 01-215 7877

15

T Muir Esq

Office of the UK Permanent Representation

to the European Communities Rond Point Robert Schuman 6 1040 Brussels

11 January 1978

HRK 164/1...

RECENT

1 JAN 1978

DESK USILEN INDEX

PA

Action

No

च

HONG KONG POWER STATION PROJECT

Further to Peter Dougherty's telephone conversation with you on Monday I hope that the following information will be helpful to you:

i

ii

iii

iv

A Hong Kong power company, CLP/EE, owned 60% by Eastern Energy (a wholly owned subsidiary of Exxon) and 40% by China Light and Power (a quoted Hong Kong company) has given GEC a Letter of Intent for the supply of 2 x 350 MW dual fired generating units. Hopefully the contract negotiations will be completed by the end of March. This contract would be worth just over £100m at 1977 prices. Meanwhile, discussions are continuing on the possible supply of a further 2 x 350 MW units;

No other

This contract will be a negotiated contract. company whether from EEC, Japan or USA - has been allowed by CLP/EE to present proposals in Hong Kong;

This Department, for the first time ever, took the lead in the negotiations for this contract. This reflected its wish to make it possible for the power plant industry, which is very hard pressed, to obtain a much-needed contract in Hong Kong (which is treated by the EEC as a third country). The Department nominated GEC as the main contractor: had built two previous power stations for CLP in Hong Kong;

GEC

The 2 x 350 MW units should provide substantial employment for 2/3 years in the Assisted Areas (if the order for the other 2 x 350 MW units were also gained the employment implications would be spread over 5/6 years). Some 55 per cent of the work will in fact be carried out by Babcock and Wilcox, the sub-contractor for the boilers, at Renfrew near Glasgow. GEC's own work (virtually all the rest of the contract) will be carried out at Larne in Northern Iroland and Manchentor thene factories will account for half the Q10 element And at afford and Rugby which are not in Assisted Areas;

44