TNAG-2259-FCO40-3255-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-Brit-1991 — Page 137

CONFIDENTIAL

FM BTC HONG KONG

TO PRIORITY DTI

TELNO 205

OF 051145Z NOVEMBER 91

AND TO PRIORITY ECGD

INFO PRIORITY PEKING

CONFIDENTIAL

127

134356

MDLIAN 1829

HKB 182/3

بی

A

DTI (FOR PEP AND OT2/22

01218

MY TELNO OTTER 155: GORDON WU'S PROJECTS: SHAJIAO 'C' POWER STATION.

SUMMARY

1. GEC ALSTHOM APPEAR VERY WELL PLACED TO TAKE THIS ORDER TO A VALUE OF OVER POUNDS 250 MILLION. GORDON WU HAS ASSURED ME THAT HE PLANS TO GIVE IT TO THEM. ECGD'S SUPPORT WILL BE IMPORTANT.

DETAIL

GEC ALSTHOM REPRESENTATIVES LED BY ABRAHAMS HAVE HAD TALKS WITH GORDON WU AND HOPEWELL HOLDINGS AND WITH THE GUANGDONG POWER AUTHORITY PEOPLE DURING THE LAST WEEK.

2.

3.

THE REQUIREMENT IS FOR 2 X 660 UNITS. THE TOTAL VALUE WILL BE ABOUT POUNDS 450 MILLION, EXCLUDING CIVIL WORKS. OF THIS, THE BOILERS WILL BE WORTH ABOUT POUNDS 200 MILLION AND THE TURBINES AND THE BALANCE OF THE PLANT POUNDS 250 MILLION. THE MAIN CONTENDERS ARE GEC ALSTHOM AND ABB. ABB HAVE PUT FORWARD TWO DIFFERENT PACKAGES, ONE WITH BABCOCK-HITACHI BOILERS AND THE OTHER WITH CE BOILERS.

4. THE TIME-TABLE, AS OFTEN WITH GORDON WU'S PROJECTS, IS NOT CLEAR CUT, BUT A DECISION SEEMS LIKELY BEFORE THE END OF THE YEAR WITH DISCUSSIONS ON CONTRACT DETAILS EXPECTED TO TAKE ANOTHER 2 OR 3 MONTHS.

5.

GEC ALSTHOM PUT IN THE LOWEST BID. THEY HAVE ALSO REDUCED THEIR SUPPLY TIME TO 37 MONTHS TO FIRST SYCHRONISATION, WHICH ALMOST MATCHES ABB'S OFFER OF 36 MONTHS.

6

IN THEIR DISCUSSIONS GEC ALSTROM HAVE RECEIVED VARIOUS

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CONFIDENTIAL