TNAG-2307-FCO40-3343-UK-inward-investment-in-Hong-Kong-1991 — Page 35

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

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holding DTI-supported promotions of British food products.

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B MAJOR PROJECTS

Airport Project

11 An announcement was made simultaneously in London, Peking and Hong Kong on 4 July that the British and Chinese Governments have initialled a memorandum of understanding on matters concerning the construction of the new airport, and related issues.

12 UK companies have a continuing strong interest in winning project business related to the PADS developement.

HONG KONG POWER PROJECTS.

13. UK has been a traditional supplier to the Hong Kong market and is able to provide a range of power equipment which would fully meet its needs.

BLACK POINT

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CLP and Exxon Energy Ltd (a subsidiary of Exxon Group of USA) are at an advanced stage in planning a new 5300 MW power station at Black Point. This will comprise a mixture of coal- fired and combined cycle gas-fired plant. Ordering will be in two phases, one for 2 units (1300-1400MW) of coal-fired plant and the other for 4 units (2700-2800MW) of combined cycle plant.

15 CLP intend to place an order for the first phase in 1992, and are soon to decide whether this will be coal-fired or combined cycle. The main determining factor will be the progress of negotiations with the Chinese authorities for gas supplies from the Hainan fields.

16 The coal-fired plant would have a value of around £600M. The UK element will depend on whether GEC Alsthom win the contract and on where they procure the boiler. If this were to go to Babcock, UK content would probably be in the range £450- 510M. GECA will not decide until CLP have opted firmly for coal- firing and expressed their own preferences. Technical doubts have been raised on both boilers; the DTI is trying to help Babcock convince CLP about their offering.NEI have also made a presentation to CLP and are hoping to pre-qualify for the supply of a thermal power plant.

17 If CLP opt for combined cycle first, the UK is likely to face stronger competition because no company has a previous track record of building such equipment for CLP. John Brown Engineering are currently building a 3x100MW simple cycle gas turbine station on Lantau Island, with gas turbines supplied from the States; the company has no experience of large combined cycle plant but is currently developing the capability to

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