TNAG-1058-FCO40-1308-Guangdong-nuclear-power-station-project-1981 — Page 88

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(b) Sharing and Pricing of Electricity

by the

joint

nuclear

power station

electricity generated The would be shared by GPC and CLP according to the shareholdings of

After i.e. GPC 60% and CLP 40%. GPC and HKNIC,

three years of initial operation, the plant availability is expected to reach about 65% and the total units sent out per annum would be about 10249 GWh of which GPC would share 6149 GWh and CLP 4100 GWh.

The Electricity will be sold to GPC and CLP at the same price. price will be determined by the cost of electricity generated by GNPC. This cost will comprise depreciation, fuel cost, O & M costs, taxation, interests, decommissioning allowances and profit. It is assumed that, for payment of electricity to GNPC, CLP will

will use while

RMB, GPC

to in

be pay

Hong Kong currency supplemented by foreign exchange as required.

For the purpose of maintaining foreign currency balance of GNPC, it will be necessary for

its share of GPC to resell part of electricity to CLP and the foreign currency thus earned by GPC will be used as part of GPC's payment of electricity to GNPC.

electricity to

resold be

to CLP by The

GPC, expressed percentages of total electricity sent out by GNPC is assumed to be as follows:-

as

Period

1988 1992

1993 1995

1996

-

2008

Percentage

30%

25%

20%

The resale price will be higher than the price of electricity of GNPC and the difference has been tentatively assumed to be 10% in the economic evaluations. The actual resale price will be subject to negotiations before signing of the contract.

(c)

Loan Repayment and Decapitalisation

(i)

Payment of Loan Interest

nuclear joint

power

is

During the construction of the station from 1980 to 1988, the accrued loan interest estimated to

to be has be US$902m which

been assumed financed 90% by additional loans and 10% by share equity.

After the commissioning of the nuclear power station, the loan interest to be paid each year will be charged to the cost of electricity of GNPC. In other words, part of the

will be used to electricity revenue of GNPC

pay loan

interest.

the 15 interest during

year is estimated to

total loan The

loan repayment period from 1989 to 2004 be US$1686m (present value of US$457m).