TNAG-1058-FCO40-1308-Guangdong-nuclear-power-station-project-1981 — Page 97

5.

24

RECOMMENDATIONS OF THE EXECUTIVE COMMITTEE

(i)

GPC and CLP shall recommend to their respective Boards of Directors and Government authorities that a joint nuclear

tentatively called

Nuclear Guangdong

power

company

Power

Company (GNPC) be established by 1st April 1981 to develop, operate and manage

joint a

nuclear

in power station Guangdong. GNPC shall be registered in China and under the laws of the People's Republic of China.

(ii)

A

new

(iii)

(iv)

(v)

(vi)

(vii)

Hong

called tentatively company,

Nuclear Kong Investment Company (HKNIC), shall be established and registered in Hong Kong to collaborate with GPC in the establishment of the above-mentioned GNPC. HKNIC will have shareholders other than CLP but will be

and managed

controlled by CLP.

It is recommended that Pressurised Water Reactors (PWR) be used for the nuclear power station in Guangdong and that the station capacity should be approximately 2 X 900 MWe. The two units are planned to be in commercial operation by 1988 and 1989 respectively.

After

soon as

approval by the respective Governments and the establishment of GNPC, purchase of equipment through

tendering or

as price negotiation should proceed possible. In the selection of equipment suppliers, preference should be given to Chinese and U.K. manufacturers if their offers on conventional equipment, machinery, material and engineering services are technically sound and are competitive in price and financial conditions.

Preliminary site investigation and feasibility study indicate that both Tun Yang and Dong Shan sites are considered suitable for construction of a nuclear power station. CLP favours Dong Shan as it is more remote and screened from Shenzhen and Hong Kong by a range of mountains.

and

The equity of GNPC shall be contributed by GPC (60%) HKNIC (40%). GPC and HKNIC shall share profits and losses according to their equity ratio.

the

the

Costs of

associated transmission system connecting nuclear power station and the GPC and CLP networks have not been included in the cost estimates of the nuclear power station. It is recommended that such transmission system capital investment should be separately financed and shared by GPC and CLP in accordance with the recommendation in the system design summary report.

(viii)

The capital investment

of GNPC will equity (10%) and long term loans (90%).

be financed

by

share