TNAG-1059-FCO40-1309-Guangdong-nuclear-power-station-project-1981 — Page 100

6.3.2

(h)

(i)

Construction Period.

The Reviewing Board advised that a construction period of 8 years. appeared difficult to achieve. Although there have been cases of nuclear power stations being built in 6 years, this applied only to the actual construciton period. Taking into consideration the preparatory period, these actually worked out to be 9 years.

Risk Analysis.

It was felt that some sensitivity tests were made in the Feasibility Study Report, but risk analysis had been left out. e.g.

(i) the consequences of lower load factors were not analysed.

(ii) the consequences of non-delivery or late delivery of nuclear

fuel were not considered.

7.

UK Equipment.

It was agreed that under equal circumstances of price and quality, preference should be given to the U.K,

Apprehensions expressed were mainly in relation to GEC's lack of operational experience on 3000 rpm wet steam turbines. It was generally agreed that GEC had the capability to manufacture such a machine. Howerver since the proposed turbine had not been operated before, there were lingering doubts in their performance and efficiencies. It was felt that if these fell below expected levels then both GPC and CLP's economic operation could be jeopardised, leading even to bankruptcy.

The Reviewing Board requested more information with regard to the extent of GEC's guarantee. Specifically, if losses were incurred because of low availability or efficiency, what would be the extent of GEC's financial guarantee? Views were expressed that guarantees covering only free replacement of parts could do little to compensate the two companies for the losses incurred.

The Reviewing Board understood that GEC was interested in Equity Participation in HKNIC. This participation was welcomed.

Mr. Chen advised that he had heard in Beijing that both the GEC machines in South Korea and the United States had started operation and performing satisfactorily.

He requested CLP to obtain some data on these two machines, perhaps sending a couple of engineers to look them over and preparing a report for the benefit of both CLP and GPC. He said there was no need for CLP to wait for GPC as travel facilities were not so easily available to them.