TNAG-2981-FCO40-1473-Guangdong-nuclear-power-station-project-1982 — Page 29

CONFIDENTIAL

GUANGDONG NUCLEAR POWER STATION PROJECT : ESSENTIAL FACTS

1.

A study undertaken by China Light and Power Company Limited (CLP), Guangdong Power Company (GPC) and the United

Kingdom Atomic Energy Authority (UKAEA) in 1980 concluded that

it was feasible for GPC and CLP jointly to construct and operate

a 2 x 900 MW PWR station some 30 miles north-east of Hong Kong in Guangdong Province. The total cost of the project was estimated at £2,000m; the foreign exchange costs would be met

from electricity sales to Hong Kong. The study recommended that

the conventional island contract should be awarded to GEC.

SCOPE OF UK INTEREST

2.

(i)

CONVENTIONAL ISLAND

-

GEC Turbine Generators are

seeking to secure the turbine island contract valued at

approximately £500m, of which an estimated £475m would be

UK content.

-

(ii) NUCLEAR ISLAND The estimated value of the

contract for the whole island could be of the order of

£1,300m. We would need to work with either the French

(Framatome) or the Americans (Westinghouse). If the

French were to secure the nuclear island it is very

unlikely the UK would secure any nuclear plant business. If the US State Department were willing to agree to the

export of nuclear technology to China perhaps as much as

70% of the total value of this contract could come to the

UK.

(iii) NUCLEAR FUEL The Chinese are seeking a dual

source for the fuel supply. We and the French have the ability to supply both fuel and associated processing facilities. A 50% share of the fuel contract (excluding enrichment) over 10 years would be worth approximately £4m per annum. With enrichment included this figure would rise to £20m per annum.

CONFIDENTIAL

/BACKGROUND