TNAG-0768-FCO40-972-Supplies-of-electrical-power-for-Hong-Kong-Castle-Peak-power-1978 — Page 21

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FOR HAVELOCK FROM THORNTON.

OFFICER

INDEX

(PA

Action Texe.

w/R.

No

M.I.P.T: UNITS 3 AND 4 - LETTER OF INTENT.

1

FOLLOWING IS TEXT:-

NR 1.

1. WE REFER TO YOUR LETTER OF 19TH JUNE 1978 (THE 'OFFER LETTER'') SETTING OUT YOUR OFFER TO US FOR TWO 350 MW UNITS (UNITS 3 AND 4) AND ASSOCIATED PLANT AS ENVISAGED IN THE CONTRACT MADE BETWEEN US ON 8TH APRIL 1978 (THE ''CONTRACT'').

2. WE NOW HAVE PLEASURE IN ADVISING THAT, SUBJECT TO:

(1)

A SATISFACTORY CONCLUSION BEING REACHED IN THE NEGOTIATIONS AND DISCUSSIONS BETWEEN THE BRITISH GOVERNMENT, OUR SHAREHOLDER YOURSELVES AND THE APPROPRIATE FINANCING INSITUTIONS:

(11) THE GOVERNMENT OF HONG KONG APPROVING

(A)

(B) A FINANCING PLAN (INCLUDING THE EXTEND OF DEVELOPMENT

TARIFF LEVELS, AND

FUND FINANCING)

AND WHICH PROVIDES FOR THE CONSTRUCTION OF THE ADDITIONAL UNITS,

(III)SIMILAR PROVISIONS TO THOSE CONTAINED IN PARAGRAPH 3 OF 18 AGREEMENT TO THE CONTRACT

IT IS OUR INTENTION TO FINALISE A SUPPLEMENT TO THE CONTRACT WITH

YOU FOR THE TWO ADDITIONAL 350 MW UNITS AND ASSOCIATED PLANT (THE PLANT'') FOR THE POWER STATION.

3. IT IS APPRECIATED THAT IT MAY BE NECESSARY FOR YOU TO START

WORK AND TO ORDER CERTAIN MATERIALS AND COMPONENTS (THE PRELIMIN-

ARY WORK) FOR THE PROJECT BEFORE EXECUTION OF THE CONTRACT.

IN