TNAG-1160-FCO40-1440-Visit-by-Margaret-Thatcher--UK-Prime-Minister--to-Hong-Kong--1982 — Page 21

BACKGROUND:

CONFIDENTIAL

PROJECT

The site of Castle Peak will eventually house two power stations, developed

jointly by China Light & Poer Co (CLP) and Eastern Energy Ltd, a subsidiary

of the Exxon Corporation.

2.

burn coal or oil.

Castle Peak 'A' Station is a 4 x 35CMW station with the ability to

Contracts for the first 2 units were signed in 1978 and

for the second pair of units in 1979. There are also 4 X 60MW gas turbines.

The first 350MW unit was commissioned in February 1982 (in record time) suc-

cessfully delivering power to the system only 3 years, 8 months, after work

began. The station will be fully operational by Summer 1985. Contract value

at present day prices is £300m.

3. Castle Peak 'B' Station is a 4 x 660MW coal-fired station. The contract

was signed in August 1981. The first unit will be operational in January 1986,

and the full station by 1989/90. Contract value at present day prices is £550m.

4.

Castle Peak Transmission Project

associated with Castle Peak 'A

$ is a

new transmission network to distribute the electricity generated to the whole

of Kowloon and the New Territories. It will operate at 400KV, considerably

higher than CLP's existing network. Project value is £170m.

THE CUSTOMER

5. Castle Peak Power Co Ltd (CAPCO) is a company in Hong Kong which is owned

60% by Eastern Energy Ltd, an affiliate of Exxon Corporation, and 40% by China

Light & Power Co Ltd (CLP). CLF has an exclusive position in the distribution

of electricity to Kowloon and the New Territories of Hong Kong. Its associated

electric power generation comparies, in which the shareholding is the same as

2

CONFIDENTIAL