TNAG-0766-FCO40-970-Supplies-of-electrical-power-for-Hong-Kong-Castle-Peak-power-1978 — Page 139

the Department, for the first time ever, had taken the lead in a contract of this kind. A unique approach had been adopted whereby a small co-ordinating team comprising the Department of Industry/lazards/GEC had liaised and developed proposals. This team in turn worked to Mr Lippitt, who reported to the Minister of State, Mr Alan Williams;

GEC were chosen by the Department as the lead contractor because they had provided an earlier power station to CLP/Exxon which was working successfully and because they were already advanced in technical preparation for the new power station;

in September the Department put detailed proposals to CLF/Exxon in Hong Kong. The Department had arranged for

a review of the prices put forward to satisfy itself that the

prices were internationally competitive. The package

incorporated two unique proposals. First, the

possibility of buyer credit in Hong Kong dollars as developed by Lazards with ECGD. This proposal was still being considered by CLP/Exxon: if they preferred, buyer credit in US dollars would be provided. Secondly,

the offer of technical assistance from the CEGB which should b especially useful to CLP/Exxon as the companies had no experience of coal fired power stations;

the Department had taken the lead in the negotiations in Hong Kong. Four visits had been made by the Department in recent months, at times leading a team of 15-16 executives from contractors, merchant banks, ECGD and CEGB. Contractors had answered more than 600 technical questions raised by CLP/Exxon: altogether, GEC's proposals covered 19 volumes;