TNAG-1059-FCO40-1309-Guangdong-nuclear-power-station-project-1981 — Page 3

(g)

contingency plans for possible disconnection

of supply (paragraph 20);

(h)

size of unit (paragraphs 21 and 22);

(i)

effect of nuclear project on the price paid by Hong Kong consumers (paragraphs 23 to 29);

(j)

implications for CLP scheme of control (paragraphs 30 and 31).

The memorandum then goes on:

(k)

to consider where the balance of advantage lies (paragraphs 32 to 34);

(1)

to record HEC's possible interest in the project (paragraphs 35 and 36);

(m)

(n)

to set out the public relations aspects and financial implications of the proposals (paragraphs 37 to 40); and

finally, to seek Members' advice on what is proposed (paragraph 41).

Summary of the Feasibility Report

(a) Main conclusions and recommendations

6

The report (which quotes costs in US$ which have been translated into HK$ for the purpose of this memorandum at an exchange rate of HK$5 to HK$1) concludes that:

(a)

(b)

us

a nuclear power station of 2 x 900 MW capacity can be safely accomodated in Guangdong Province and can be integrated into the interconnected Guangdong and Hong Kong electricity systems;

assuming the two units are installed in 1988 and 1989 the cost after allowing for initial fuel charge, price escalation and interest would be as follows:

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