TNAG-0949-FCO40-1168-Effect-of-nuclear-exports-to-China-on-Hong-Kong-Guangdong-nu-1980 — Page 134

ATTACHMENT FIVE

W.F. STONES'S UNDERSTANDING OF KEC'S VIEWS ON THE DEVELOPMENT, MANAGEMENT, AND FINANCE OF JOINT CLP/KEC NUCLEAR POWER STATION, ASSUMING THE PARTICIPATION TO BE KEC 60%, U.K.

Final Draft 8.7.1980

& LOCAL INTEREST 401

It

the

views

in submitting the paper to you must be clearly understood that

implied that can be

commitment either no expressed will be accepted by CL&P or other parties named.

there

real

ΟΙ

1.

Nuclear Power Station Company (NPS)

(a) NPS

to

is

in China registered be management and owning of the nuclear constructed in Guangdong.

for the

power station

development,

to be

(b)

NPS will be jointly owned by:-

(i)

KEC/PRC 60% of total equity; and

(ii)

HK Nuclear Investment Company (HKNIC) equity.

40% of

total

(c) HKNIC will be a company registered in Hong Kong and jointly

`owned by U.K. and local interests.

(a)

Board of Directors. a

and HKNIC KEC NPS will have fill the Board in proportion to their equity ratios.

will

(e)

Contract between KEC,

and HKNIC for

will cover a period of 25 years.

the investment

in NPS

(f) NPS will own two 900 MWe PWR machines initially.

2.

Finance of NPS

(a) NPS is to be financed by shareholder's investment (equity)

and loans. In principle, shareholder's investment

(b)

be kept as little as possible.

should

It is anticipated that the following financing arrangement is practical:-

KEC/PRC investment

6% of total

HKNIC investment

4% of total

Domestic RMB loans

20% of total

Foreign Bank loans

70% of total

be for the

KEC/PRC investment and domestic RMB loans will purpose of paying for the domestic costs of the project, e.g. land, civil works etc.