TNAG-0768-FCO40-972-Supplies-of-electrical-power-for-Hong-Kong-Castle-Peak-power-1978 — Page 13

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reasonably competitive, but there are two potential problems. First, CLP have asked for a detailed price-breakdown of the

offer which could cause problems as, in certain areas, Balfour Beatty's prices are significantly higher than eg the Japanese

would offer. The DOI are, so far, refusing to provide a detailed breakdown on the grounds that this is irrelevant to an assessment of its overall competitiveness, although they have agreed to identify the main constituent part of their bid. Secondly, CLP are proposing to Balfour Beatty that they should make a down payment of only 5% (as they did in the original contract with GEC) rather than the normal 15%. This is

presenting some difficulties, but we hope that they can be over- come and that Balfour Beatty will be awarded the contract in the reasonably near future.

CONFIDENTIAL