CONFIDENTIAL
Until we have agreed with CLP proposals for the sharing of risks with the Chinese,
a definitive finance package cannot be produced. The attached suggests what might
be stated if officials are asked to comment by Chen Gang or Chinese officials
during their prospective visit to the UK.
Her Majesty's Government will be responsible for ensuring that an attractive
and highly competitive financial package is provided by the banks comprising:-
a)
b)
export credits in respect of the imported capital goods and services and the initial fuel supply to be provided for the nuclear power station.
on terms no less favourable than those to be offered by the supplier of
the nuclear island;
a commercial loan in respect of the balance of the project cost not
financed by equity.
Export Credits
Her Majesty's Government would arrange for the export credits to be supported at
the most favourable terms permitted under the Standstill Agreement on Nuclear
Power Stations among OECD countries. Separate loans would be provided from each
country supplying capital goods and services and the initial fuel supply and it
is expected that they would be supported by each export credit authority on the
same terms and be denominated in US dollars.
Additional export credits on the same terms would also be made available to finance
the interest payable on the export credits during the construction period so that
the nuclear power station would only have to start paying interest and repaying
the loans after the station had started generating electricity.
Commercial Loan
·
In addition to the export credits, a commercial loan in respect of the balance
of the total project cost not financed by equity will be provided on the best
terms available in the eurodollar market. Additional commercial loans will be
provided to finance interest payable on the commercial loans during the
construction period,
No comments yet.
Private notes are available after approval.